The scenario:

The trainees at your new firm are all high achievers and share the same ethos of “work hard and play hard”. Results matter and the firm’s mantra is: “Excellence gets top rewards."  

As a new joiner you are invited to join the students’ WhatsApp Group. The chat includes helpful tips on dealing with difficult clients on your first audits, and useful exam techniques. Shortly before the next Tax Compliance Exam, one of the overseas students very kindly shares some practice questions with the whole group. 

When you take the exam, you realise that many of the questions are exactly the same as the practice questions that were posted in the WhatsApp Group.

Your intake totally aces the exams.

As a reward, the firm holds a special drinks and disco event to thank its excellent students. One of the partners appears to get increasingly inebriated over the course of the evening. Going outside to take a call, you notice that the partner is alone with one of your fellow trainees. The trainee looks very uncomfortable.

The partner asks you to go back inside to get another drink for the two of them. However, there is a crush at the bar and so it takes you a little while. As you come back outside, you see your fellow trainee running away in tears. The partner is nowhere to be seen.

You return to the party where everyone is having a good time and really letting go after the stress of the exams. One of the trainees has come to the party straight from an audit client and is clutching a bundle of documents.

You get the trainee group all together and take lots of selfies which you later post onto your Instagram account. Someone makes a disparaging comment about the outfit you were wearing. You end up having a blazing row about it on X.

In the background of one of the posted photos, you can just about make out some documents relating to the audit that your fellow trainee is working on.

What does the Code say?

Acting in the public interest

Section 110.A1(e) and R115.1(b) emphasise that professional accountants should behave in a manner that is consistent with the profession’s responsibility to act in the public interest.

Promoting ethical culture

New section 120.13A2 emphasises that leaders and those in managerial roles have a role in promoting the importance of the ethical values of the organisation. New section 120.13 A3 reminds individual professional accountants of their role in promoting ethical behaviour and culture in their organisation, taking into account their position and seniority.

Acting with integrity

The principle of integrity (section 111) involves fair dealing, truthfulness and “having the strength of character to act appropriately”, even when facing pressure to do otherwise or when doing so might create potential adverse consequences.

“Acting appropriately” means that standing one’s ground when confronted by dilemmas and difficult situations; or challenging others as and when circumstances warrant, in a manner appropriate to the circumstances.

Professional accountants are required to “have an inquiring mind”. This requires them to obtain an understanding of the known facts and circumstances which are required for the application of the Conceptual Framework.

There are two elements of “having an inquiring mind” which are set out in the revised section 120.5 A1 (a) and (b). These are: considering the source, relevance and sufficiency of information obtained, as well as being open and alert to a need for further investigation or other action which may be necessary in the light of any new information that comes to the attention of the professional accountant, or where circumstances may have changed.

Preserving confidentiality

A new definition of “Confidential Information” is now set out in the Glossary: “Any information, data or other material in whatever form or medium (including written, electronic, visual or oral) that is not publicly available.”

Section R114.1.A1 emphasises that to maintain the confidentiality of information, the professional accountant must take “appropriate action” “… in the course of its collection, use, transfer, storage or retention, dissemination and lawful destruction.”(ie, throughout the entire data governance life cycle).

Section R114.2(d) clarifies that a professional accountant is not able to use or disclose information, which is subject to the duty of confidentiality, even where that information has become publicly available (either properly or improperly).

Section R114.3 sets out the specific conditions under which it is possible to use or disclose confidential information: “(a) there is a legal or professional duty or right to do so; or (b) this is authorised by the client or any person with the authority to permit disclosure or use of the confidential information and this is not prohibited by law or regulation.

Professional behaviour

Section 115.1 A2  states: ‘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.’

• ICAEW guidance on professional and personal conduct