Chapter 16: Confidentiality

Question 1

What is the importance of confidentiality?

Answer 1

principle of IFAC And ICAEW

client will otherwise not give all info

Question 2

When should the confidentiality be kept?

Answer 2

• social environment
• within firm
• end of business relatiobship
• change employment or new client

Question 3

What is the difference in right to disclosure and duty to disclosure for confidentiality?

Answer 3

right:

1) client permission
2) in public interest
3) defend firm of negligence claim

duty:

1) court order
2) regulatory requirement (FCA)
3) money laundering suspicion
4) terrorist activities?

Question 4

What are the examples of money laundering?

Answer 4

Do not tell client if you snitch on them

• customer overpayment
• non-compliance with laws to save cost
• illegal loan to director

Question 5

How does auditor firms and accountants ensure not to be in conflict of interest?

Answer 5

• no lack of sharing info to clients
• if two clients with interest conflicts then:
  1) physical seperate team
  2) information barrier
  3) signed trust agreement