ACCA Advanced Taxation (ATX) Practice Exam

Which type of clients do the confidentiality principles apply to in ACCA's Code of Ethics?

1. Only current clients

2. Only ex-clients

3. Both ex-clients and current clients

4. Only public clients

The correct answer is: Both ex-clients and current clients

The principles of confidentiality in ACCA's Code of Ethics apply to both current and ex-clients because maintaining confidentiality is a core ethical obligation for accounting professionals. This principle ensures that any information obtained during the course of professional work—whether the client is still receiving services or has since ended their relationship with the accountant—remains protected. Current clients require confidentiality to foster trust and encourage open communication, essential for effective service delivery. However, even after a professional relationship concludes, the information gathered must still be safeguarded. This is crucial not only for protecting the client's interests but also for maintaining the integrity of the profession. Confidentiality obligations do not cease upon the termination of a client relationship; thus, both current and ex-clients are covered under these principles. This understanding highlights the importance of ethical standards that guide professional conduct in accounting and reinforces the long-term commitment to client confidentiality, extending beyond the duration of the professional engagement.