Chapter 16 - Confidentiality

Question 1

When does the information commissioner’s office need to be notified?

Answer 1

Notification effective for 1 year

Question 2

What is classed as a personal data breach?

Answer 2

• Unauthorised access to file storage
• Leaving personal docs in a public place
• Passing on info to a 3rd party without permission

Question 3

What is not considered a personal data breach?

Answer 3

• Failing to respond to a subject access request on time
• Sending marketing info
• Loss of data about a deceased person

Question 4

What are the safeguards to confidentiality?

Answer 4

• Don’t discuss outside the firm
• Don’t discuss in public
• Don’t leave files unattended
• Don’t leave files in cars or public places
• Keep working papers in office

Question 5

Can the officer and MLCP be the same person?

Answer 5

Yes

Question 6

What must the MLCP be?

Answer 6

Either on the board or a member of senior management

Question 7

What could be included as examples of money laundering?

Answer 7

• Keeping customer overpayments
• Failure to meet environmental standards

Question 8

What issues may cause suspicions of money laundering?

Answer 8

• Credits on receivables ledger
• Unusual related party transactions

Question 9

What are the safeguards for conflicts of interest?

Answer 9

• Disclosure of circumstances
• Confidentiality agreements
• Chinese walls (info barriers)
• Ceasing to act
• Review of safeguards

Question 10

When is there a legal duty to disclose confidential info?

Answer 10

• When terrorist activity has taken place, it should be reported to the police
• When regulatory breaches have taken place at a charity, it should be reported to the Charities
  Commission
• When money laundering is suspected, it should be reported to the (NCA)

Question 11

When is it appropriate to disclose confidential info?

Answer 11

• When the client has granted permission
• When there is a public duty to make disclosure
• When there is a legal duty to make disclosure

Question 12

How can an auditor’s duty of confidentiality to summerised?

Answer 12

Auditors may disclose matters to third parties without their client’s consent if it is in the public
interest, and they must do so if there is a statutory duty to do so

Question 13

Does UK GDPR oblige auditors to secure any data held on an audit client company?

Answer 13

No

Question 14

Does the auditor have primary responsibility for reporting any breaches of the UK GDPR by audit clients to the Information Commissioner’s Office?

Answer 14

No