90.2K

Verified Solution

Link Copied!

QUESTION 5 (13 marks) You are working part-time at LMJ Accounting Firm, a well-respected accounting practice that serves a diverse range of clients. As an intern, you have access to sensitive client information, including financial statements, tax returns, and confidential business strategies. During a lunch break, you overhear a conversation between two Senior Accountants discussing confidential client information about a high-profile client, Beans About Coffee Ltd. They disclose financial details and strategic plans that are not meant to be shared outside the firm. You realise that the information being discussed could harm Beans About Coffee Ltd. competitive position and reputation if it were to be leaked. You face a dilemma regarding how to handle the situation. On one hand, you have an obligation to maintain client confidentiality and safeguard sensitive information. On the other hand, confronting the Senior Accountants about the conversation could potentially create tension within the firm and strain your professional relationships. REQUIRED: Based on the scenario provided, discuss how the principle of confidentiality outlined in the IFAC Code of Ethics for Professional Accountants applies. Provide guidance on the appropriate course of action to address the ethical dilemmas faced in the context of the conversation overheard at LMJ Accounting Firm. (13 marks)

Answer & Explanation Solved by verified expert

See Answer