ACCA Advanced Audit and Assurance (AAA) Practice Exam

Under what circumstances may a member disclose confidential information?

1. When they decide it is in their best interest

2. Without any restrictions after the relationship ends

3. When there is a legal right or duty to do so

4. Upon request from any third party

The correct answer is: When there is a legal right or duty to do so

The correct choice highlights a fundamental principle in professional ethics and confidentiality obligations. A member can disclose confidential information when there is a legal right or duty to do so. This means that if a legal obligation exists, such as a court order or a legal requirement to report certain information (for example, in cases of fraud or other illegal activities), the member is not only permitted but may be required to disclose that confidential information. In the context of professional conduct, maintaining confidentiality is paramount; however, it is also essential to recognize instances where legal obligations supersede the duty of confidentiality. This principle ensures compliance with the law while balancing the ethical obligations that professionals have toward their clients or employers. Other options do not hold under the principles of professional conduct. Disclosing information solely based on personal interest lacks a legal or ethical foundation, while assuming that confidentiality ends once a relationship does not take into account ongoing legal responsibilities. Lastly, disclosing information upon request from any third party undermines the commitment to confidentiality and would typically only be valid if aligned with legal obligations.