ACCA Advanced Taxation (ATX) Practice Exam

What must ACCA members do regarding knowledge gained from prior client relationships?

1. Freely share it with new clients

2. Follow confidentiality guidelines

3. Only utilize non-specific knowledge

4. Disclose it to regulatory bodies

The correct answer is: Follow confidentiality guidelines

The requirement for ACCA members to follow confidentiality guidelines is rooted in the ethical standards that govern professional conduct in accounting and taxation. When members engage with clients, they may acquire sensitive information about their financial situations, business strategies, or personal matters. Confidentiality is imperative to maintain trust between clients and their accountants, as well as to uphold the integrity of the profession. ACCA members are obligated to protect this information and are not permitted to disclose it to new clients or use it in a manner that could disadvantage the original client. This aligns with the principles of professional secrecy and confidentiality, which serve to protect client information and foster a trustworthy professional environment. While the other options suggest potentially legitimate activities, such as sharing knowledge with new clients or disclosing information to regulatory bodies, these actions could violate confidentiality unless explicit consent from the original client is obtained or there is a legal requirement to do so. The focus on adhering to confidentiality guidelines ensures that ACCA members remain ethical and professional in their dealings.