Confidentiality in Accounting

In a business surrounded by money such as accounting, a sense of trust must be formed between the client and the accountant. An accountant must know who they can or cannot share a client’s information with. Anytime someone’s bank accounts or cash is handled, there needs to be trust that the accountant will not go around telling everyone how much money is in what accounts. State law acknowledges that a business relationship between a client and the accountant is to be confidential. However, the federal law does not distinguish an accountant and client confidentiality relationship. The accountant is to protect the information from others, which causes clients to speak more openly about their money and accounts. In the Chartered Institute of Management Accounting code of ethics, Section 140 is directed towards confidentiality. This section includes whom may obtain knowledge of a client’s information, whether to include a third party or not, and what should happen if a business relationship has ended. This section protects information such as payroll data and account history.

The section on confidentiality is segmented into specific statements to ensure that the privacy of the client is protected. Section 140.5 states that “a professional accountant shall take reasonable steps to ensure that staff under the professional accountant’s control and persons from whom advice and assistance is obtained respect the professional accountant’s duty of confidentiality.” (CIMA Code of Ethics) This particular statement is to make sure that anyone working for an accountant must pertain to the same confidentiality as the accountant does. For example, a receptionist who is filing papers must not speak of what he or she has seen in the accountant’s pap...

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...code of ethics, there is no free range for accountants in their profession therefore leaving no room for mistakes. As an accountant, having the reputation of good confidentiality can keep the business in the competitive market. When people know a company is trustworthy, the more likely they are to do business with them. In the long run, confidentiality between a client and an accountant is beneficial to all parties involved.

Works Cited

"CIMA Code of Ethics." n.d. Chartered Institute of Management Accountants. 5 November 2013 .

Kokemuller, Neil. Chron. 2013. 10 November 2013 .

Nordmeyer, Billie. azcentral.com. 2013. 5 November 2013 .