Under the ICAI Code of Ethics, when a Chartered Accountant changes employment or acquires a new client, the accountant:
AMust obtain a formal release from every former employer to use any knowledge
BMay use PRIOR EXPERIENCE but shall NOT use or disclose any CONFIDENTIAL INFORMATION acquired in the prior relationship — confidentiality continues even after the relationship ends
CMust purge all knowledge acquired from prior engagements before the new relationship begins
DMay freely use confidential information from prior employers/clients once the relationship has ended
Answer & Solution
Correct answer: B. May use PRIOR EXPERIENCE but shall NOT use or disclose any CONFIDENTIAL INFORMATION acquired in the prior relationship — confidentiality continues even after the relationship ends
Confidentiality (Principle d) continues even after the professional/employment relationship ends. The accountant may use general knowledge and prior experience, but specific confidential information acquired during the prior relationship remains protected. This is critical when CAs move between firms or take on competitor clients.
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