AAT Level 4 Synoptic Assessment Practice Exam 2025 - Complete Preparation Guide

The situation that allows for the disclosure of confidential information is based on a professional duty to disclose. This duty typically arises in circumstances where there is a legal obligation to share information, such as when an accountant is required to report suspected financial misconduct, fraud, or when they are complying with regulatory requirements.

Professional ethics in the field of accountancy emphasize the importance of confidentiality but also recognize that this confidentiality can be overridden in the public interest or when the law mandates disclosure. For instance, if a professional accountant is aware of malpractice or illegal activities, they may be compelled to report these findings to the appropriate legal authorities.

Other choices do not align with the principles of confidentiality and ethical standards. A self-request by the accountant, for example, may not serve a valid purpose for disclosing information unless it is aligned with regulatory or legal requirements. Similarly, correlating disclosure with profits or granting requests from any party without justification does not hold up under ethical scrutiny and could lead to breaches of confidentiality.