Confidentiality Flashcards
What information is confidential?
Information obtained during the course of an accountant’s professional work
Define duty of confidentiality
An obligation to respect the confidentiality of information about a client’s or employer’s affairs which has been gained during their employment or during the course of their professional work.
If an accountant knows they have not used confidential information but someone else believes you used confidential information for personal gain or that of a third party, is this ok?
No you cannot appear to use confidential information for personal gain or that of a third party. You must ensure that you do not look to be using confidential information to the public.
Is there an ongoing duty of confidentiality?
Yes the confidentiality must be maintained even after the relationship has ended.
What are the 3 reasons you can disclose confidential information?
When authorised by the client or employer
When disclosure is required by law
When there is a professional duty to disclose
Can an authorisation to share confidential information be verbal?
Yes it can but written is preferred.
When you share confidential information with authority do you need to include a disclaimer?
Yes you should include a disclaimer that states it is for the use of the builders merchants only and is given purely to …
What are the two acceptable legal reasons you are allowed to break confidentiality?
When the information is required as evidence in a court of law
When the law has been broken and the information has to be disclosed to the relevant authorities
You must wait for a witness summons or authority to give confidential information in a court of law. True or false
True
What are the four circumstances where an accountant has a professional duty to disclose?
To comply with the quality review of an IFAC member body or other relevant professional body
To respond to an inquiry by the professional accounting body of an ethical, investigatory or disciplinary nature
To protect the professional interests of the accountant in legal proceedings
To comply with technical standards and ethical requirements
What does the Data Protection Act 1998 do for the individual and the person holding the information?
It gives the individual the right to know what information is held on them
It provides a framework on how personal information should be held
What are the 8 principles that must be complied with when processing personal information?
Fairly and lawfully processed Processed for limited purposes Adequate, relevant, and not excessive Accurate and up-to-date Not kept for longer than is necessary Processed in line with the individual's rights Secure Not transferred to other countries without adequate protection
Who enforces the requirement of allowing a person to find out what information is held of them?
Information Commissioner’s Office (ICO)
Define a notification
A notification is the process by which the person controlling the data gives the ICO details about the way in which the company processes data.
Could failing to notify the ICO result in a fine?
Yes
