100.1.A1: A professional accountant’s responsibility is not exclusively to satisfy the needs of an individual client or employing organisation. Therefore, the Code contains requirements and application material to enable professional accountants to meet their responsibility to act in the public interest”.

114.0 A1: The principle of confidentiality is not only to keep information confidential, but also to take all reasonable steps to preserve confidentiality. Whether information is confidential or not will depend on its nature. A safe and proper approach for professional accountants to adopt is to assume that all unpublished information about a client’s or employer’s affairs, however gained, is confidential. Some clients or employers may regard the mere fact of their relationship with a professional accountant as being confidential.

114.2 A1: This requirement extends not only to clients, past and present, but also to third parties from or about whom information has been received in confidence. The principle of confidentiality clearly does not prevent an employee from using the skills acquired while working with a former employer in undertaking a new role with a different organisation. It would not be appropriate for professional accountants to either use or appear to use special knowledge which could only have been acquired with access to confidential information. It is a matter of judgment as to the dividing line which separates experience gained from special knowledge acquired.

115.1 A2: A reasonable and informed third party would expect that a professional accountant, in their professional life, treats others fairly, with respect and dignity and, for example, does not bully, harass, victimise or unfairly discriminate against others.

R115.3:  Professional accountants shall never promote or seek to promote their services, or the services of other professional accountants, in such a way, or to such an extent, as to amount to harassment of a potential client or employer.

300.3:  In this Part, the term “professional accountant” refers to individual professional accountants in public practice and their firms. It also applies to professional accountants in business when providing professional services.

R310.14: Where a professional accountant is required for any reason to disengage from the existing client, the professional accountant shall do so as speedily as practicable having regard to the interest of the client.

R320.5:  Having been asked to accept an appointment, the professional accountant shall at least seek to contact the existing or predecessor accountant, irrespective of whether the existing or predecessor accountant works in public practice or not. This includes circumstances where the professional accountant is asked to undertake work which is relevant to the work of an ongoing existing accountant unless the client provides acceptable reasons why the existing accountant cannot be informed.

320.5A2:  Care must be taken when communicating all relevant facts to a proposed accountant in situations where the existing or predecessor accountant knows or suspects that their client is involved in money laundering or a terrorist activity. It is important that: - The proposed accountant does not specifically enquire whether the existing accountant has reported suspicions of money laundering or terrorism. Such questions place the existing accountant in a difficult position and are likely not to be answered. - The proposed accountant does not ask the existing accountant whether client identification or ‘knowing your client’ procedures have been carried out under anti-money laundering legislation. The proposed accountant has responsibility for obtaining information for client identification and ‘knowing your client’ and this cannot be delegated to the existing accountant.

R320.6A: In circumstances where the enquiries referred to above are not answered, the proposed accountant shall write to the existing accountant by recorded delivery service stating an intention to accept the engagement in the absence of a reply within a specific and reasonable period.

320.6A1:  The proposed accountant is entitled to assume that the existing accountant’s silence implies there was no adverse comment to be made, although this does not obviate the requirement in R320.6 to take other reasonable steps.

R320.7A:  If the client fails or refuses to grant the existing accountant permission to discuss the client’s affairs with the proposed accountant, the existing accountant shall report this fact to the proposed accountant who shall consider carefully the reason for such failure or refusal when determining whether or not to accept nomination/appointment.

R320.7B:  If the existing accountant has made one or more suspicious activity reports relating to money laundering or terrorism, the existing accountant shall not disclose that fact to the prospective accountant, or make other disclosures that could amount to tipping off.

320.7 A3:  Disclosure of money laundering or terrorist suspicion reporting by the existing accountant to the proposed accountant needs to be avoided because this information may be discussed with the client or former client.

R320.7C:  An existing accountant shall deal promptly with any reasonable request for the transfer of records and may have the right of particular lien if there are unpaid fees.

R320.7D:  The prospective accountant often asks the existing accountant for information as to the client’s affairs. If the client is unable to provide the information and lack thereof might prejudice the client’s interests, such information shall be promptly given. In such circumstances, no charge shall normally be made unless there is good reason to the contrary.

320.7 A4 An example of a reason to make a charge would be that a significant amount of work is involved.

R321.3: A professional accountant shall, when providing a second opinion:

• (a) confirm oral opinions in writing as soon as practicable after giving the opinion; and
• (b) if asked for a general opinion relative to a hypothetical situation, ensure that the recipient of the opinion understands that it has been given in the context of that particular hypothetical situation only.

References to a partner or principal of a firm include the following:

• a partner/principal;
• a sole-practitioner;
• a director of a corporate firm;
• a member of a limited liability partnership; and
• an employee of a corporate firm who is:
  - a responsible individual within the meaning of the Audit Regulations;
  - a licensed insolvency practitioner; or
  - defined as such in circumstances determined by Council.