Confidentiality Flashcards
During the course of an assurance engagement, Aleem, a member of the assurance team from Goose Brothers & Co discovers that Dave Milton, ownver of D Manufacturing Limited, has told certain customers to write cheque payments our in favour of DM, rather than the full company name. Mr Milton has been amending the cheques to read D Milton, and paying them into his personal account rather than the company’s, reducing the company’s overall tax liability.
Which one of the following is the most appropriate action for Aleem to take in respect of this matter?
A. Discuss the matter with the client and advice him of the legal position
B. Report the matter to HMRC
C. Obtain the client’s permission to report the matter to the MLRO within the firm
D. Report the matter to MLRO within the firm
D. Report the matter to MLRO within the firm
True/False
The principle of confidentiality is the duty to keep client affairs secret in all circumstances.
False - there are recognised exceptions to prionciple of confidentiality
Which one of the following actions would not be recommended with regard to securing professional confidence?
A. Keeping assurance files locked up
B. Carrying out audit work at client premises
C. Discussing client affairs on the phone at a different client
D. Discussing client affairs in the firm’s office
C. Discussing client affairs on the phone at different client
If an ICAEW trainee is asked for information about client by police, which four of the following actions would be appropriate?
A. Asking his training partner for advice
B. Seeking legal advice
C. Ringing the ICAEW ethics line for advice
D. Answering the police without taking further action
E. Asking the police what authority they have to ask him
F. Asking the client if he may talk to the police
A, B, C, E are all good!
True/False
The principle of confidentiality is the duty to keep client affairs secret in all circumstances.
False - there are recognised exceptions to prionciple of confidentiality
Which one of the following actions would not be recommended with regard to securing professional confidence?
A. Keeping assurance files locked up
B. Carrying out audit work at client premises
C. Discussing client affairs on the phone at a different client
D. Discussing client affairs in the firm’s office
C. Discussing client affairs on the phone at different client
If an ICAEW trainee is asked for information about client by police, which four of the following actions would be appropriate?
A. Asking his training partner for advice
B. Seeking legal advice
C. Ringing the ICAEW ethics line for advice
D. Answering the police without taking further action
E. Asking the police what authority they have to ask him
F. Asking the client if he may talk to the police
A, B, C, E are all good!
