Accountant Responsibility

In: Business and Management

Submitted By amaris85
Words 1785
Pages 8
Introduction to Accountant Responsibility
Essentially, accountants have a responsibility a number of parties, with the major parties in this case being the government, clients and third parties. In today’s capitalist society, the accounting profession is deemed to be a common and important feature. Discussing the responsibilities accountants have to the three parties identified above would, therefore, certainly be a prudent and logical move.
Responsibility to Clients
To begin with, accountants have a responsibility to keep client information confidential. If an accountant discloses confidential client information to a third party, such an accountant would be deemed to have violated Rule 301. The said rule, in simple terms, states that “a member CPA shall not disclose any confidential information without the specific consent of the client” (Perkins, 2004). In that regard, therefore, an accountant must obtain the consent of the client before disclosing information which could be regarded confidential. The said consent could be in writing. It should, however, be noted that an accountant cannot be deemed to have violated Rule 301 if the information disclosed already happens to be in the public domain. Similarly, an accountant cannot be held liable for the violation of client confidentiality if disclosures of client information are made pursuant to proceedings of a legal nature. Yet another critical responsibility of accountants to their clients has got to do with exercise of due professional care. This essentially means that should an accountant neglect professional standards in the execution of his or her duties, i.e. by failing to detect fraud that ought to have been easily detected, the affected client can claim negligence.
Responsibility to Third Parties
In basic terms, third parties include all those outside parties an accountant is familiar with…...

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