ACCA Advanced Taxation (ATX) Practice Exam

Which principle from the ACCA Professional Code of Ethics must be followed regarding client confidentiality even after leaving a client?

1. Transparency with other firms

2. Disclosure of information if requested

3. Continued confidentiality of client information

4. Using client information for experience sharing

The correct answer is: Continued confidentiality of client information

The principle that must be followed regarding client confidentiality, even after leaving a client, is the continued confidentiality of client information. This principle is crucial in maintaining the trust between a professional and their client. Confidentiality ensures that any sensitive information acquired while providing services is not disclosed to unauthorized parties or used for personal gain. This obligation persists beyond the time of service, reflecting a commitment to ethical standards that protect client interests and uphold the integrity of the profession. Maintaining confidentiality also fosters a professional environment where clients feel secure in sharing information, which is essential for effective business relationships. In contrast, options related to transparency with other firms or disclosure of information upon request do not align with the principles of confidentiality, as these imply the sharing of client information, which violates the ethical guideline. Using client information for experience sharing can also undermine client trust and is contrary to the fundamental expectation that practitioners will protect sensitive information.