ACCA Advanced Taxation (ATX) Practice Exam

What must members of the ACCA ensure when utilizing knowledge from a former client?

1. They can use all knowledge freely

2. They must maintain confidentiality

3. They must disclose information within the industry

4. They should teach the knowledge to new clients

The correct answer is: They must maintain confidentiality

When members of the ACCA utilize knowledge gained from a former client, it is essential for them to uphold the principle of confidentiality. This principle dictates that any information obtained during the course of professional work for a client must not be disclosed to third parties without proper authorization, unless there is a legal or professional obligation to do so. Maintaining confidentiality is fundamental to the integrity of the accounting profession and helps to foster trust between clients and practitioners. Even after the professional relationship has ended, members must ensure that sensitive information remains secure and is not misused, which can include refraining from using the knowledge in ways that could disadvantage the former client. While knowledge gained from previous engagements can be valuable, it should only be used in a manner that respects the confidentiality obligations. Practitioners should also be aware of any specific legal restrictions or guidelines relevant to the particular type of information and jurisdiction applicable to their practice.