An accountant tells a friend over dinner about a client's unannounced plans to sell a division. Which fundamental principle has been breached?
Answer and explanation
Correct answer: C. Confidentiality
- Step 1: Information acquired through professional relationships should not be disclosed without proper authority.
- Step 2: Telling a friend about a client's plans breaches confidentiality.
Answer
Confidentiality.
Why not the others: Objectivity: Objectivity is about not letting bias or conflicts of interest override judgement. Integrity: Integrity concerns being straightforward and honest, which is not the main issue here. Professional competence and due care: This concerns maintaining knowledge and skill, which is not at issue.
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