Page 359 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

4. Transparency: If necessary, the accountant should make clients, the employing organization, or other users
of their professional services aware of any limitations inherent in the services or activities.

(CNO-PE.180) Confidentiality- Subsection 114
1. Confidentiality: Professional accountants are bound to maintain confidentiality regarding client information
2A. Close Associates or Family members: Accountants must be aware of the risk of unintentional disclosure,
even in social settings and especially to close associates or family members.
2B. Internal Confidentiality: Accountants must preserve the confidentiality of information within their firm
or employing organization.
2C. Prospective Confidentiality: Confidential information disclosed by a potential client or employer must
also be kept confidential.
3. Information Misuse: Accountants should not use confidential information for personal gain or the benefit
of a third party, and this obligation continues even after the professional or employment relationship has ended.
Additionally, accountants should ensure that their staff and advisors respect this duty of confidentiality.

(CNO-PE.200) Exceptions to Confidentiality in Professional Accounting Practice
1. Legal Requirement: Disclosure of confidential information is mandatory when required by law, such as when
reporting legal infringements to public authorities or during legal proceedings.
2. Regulatory Response: Accountants may (Legal Advice) need to disclose information in response to an inquiry
or investigation by a professional or regulatory body.
3. Review Procedures: Accountants have a professional duty to disclose information, unless prohibited by law,
to comply with Peer Review or Quality Review of the Institute.
4. Professional Obligation: Accountants may disclose information to comply with technical and professional
standards, including ethics requirements.
5. Professional Protection: Disclosure may be necessary to protect the professional interests of an accountant
in legal proceedings.
6. Client Authorization: Confidential information can be disclosed if it's permitted by law and authorized by
the client or the employing organization.

(CNO-PE.220) Matters to be Considered before Disclosing Confidential Information.
1.Harm: Assess potential harm to any party, including third parties, if the client or employing organization
agrees to the disclosure.
2.Verification: Determine the availability and substantiation of all relevant information to the extent
practicable.
3. Method of Communication: Evaluate the proposed method of communication and identify the intended
recipients.
4. Suitable recipients: Ascertain if the parties addressed are suitable recipients for the disclosed information.

(CNO-PE.240) Confidential Information Of former Client or Employer.
1. Confidentiality (End of Relatioship): Accountants must not disclose confidential information, even
after ending client or employer relationships.
2. Experience Use: Accountants can use prior experience in new roles or with new clients.
3. Information Restrictions: Confidential information from previous roles or clients cannot be used or
disclosed.

(CNO-PE.260) Professional Behaviour- Subsection 115
1A. Compliance: A professional accountant must adhere to relevant laws and regulations, and avoid any
conduct that could discredit the profession.

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