ACCA Advanced Taxation (ATX) Practice Exam

What is one of the fundamental principles regarding confidentiality in ACCA's Code of Ethics?

1. Information can be shared with anyone if deemed necessary

2. Confidential information should only be used with explicit consent

3. Any information can be disclosed if it’s not sensitive

4. Confidentiality applies only to current clients

The correct answer is: Confidential information should only be used with explicit consent

One of the fundamental principles regarding confidentiality in ACCA's Code of Ethics is that confidential information should only be used with explicit consent. This principle underscores the importance of respecting and protecting the sensitive information obtained in the course of professional duties. It emphasizes that professionals must not disclose or use confidential information without the explicit permission of the client or other relevant parties, thereby helping to foster trust and maintain the integrity of the professional-client relationship. This principle also extends beyond just current clients, adding to its significance in the broader context of professional ethics where the confidentiality of past clients remains crucial. Thus, adhering to this guideline ensures that professionals uphold their ethical obligations and maintain confidence in their role.