Professional ethics query

ghfoyster
ghfoyster Registered Posts: 13 Regular contributor ⭐ ? ⭐
I am just doing a practice simulation and need to show what the ethical issue is and how I would deal with it,

Your friend also has a gallery in the town and she has told you that she is 'letting' some space to a client of yours who is a VAT registered Sole trader, Your friend says he is trying to break into the art world and has been quite successful in selling some of his paintings. His accounts, which you prepare qurterly, show no income from that source.

Guidence would be much apprecated!!!

Comments

  • PGM
    PGM Registered Posts: 1,954
    It would be unethical to use information from your client, and also break client confidentiality to give it to anyone else without their consent.

    However you can advise your friend on matters of letting out a property. Such as getting references, a copy of annual accounts if publically available, and get a deposit etc.
  • whos that girl
    whos that girl Registered Posts: 28 ? ? ?
    The issues here are Interity and Objectivity. These should not be compromised by a professional, as by the looks of it the friend is obtaining money and not accounting for it. This could be a way they are trying not to pay the tax man. This is wrong and questions these issues. Interity as you now have this information first hand and you must used your interity and honesty, if your friend does not agree to start accounting for the money she gets from the extra sales shes made you must inform HMRC of this. Objectivity as this is the behaviour you must take. Your position as a friend must not overide this. Your must remain objective and not let any feelings you have impact on the decision you know is right. Infact doing a friend accounts is not good professional behaviour either as this would threaten your independence. In other words other people may see this as you doing your friend a favour , I.e cheaper fees or defacing the actual accounts to get a rebate.

    That is what i think. Hope this helps.
  • ghfoyster
    ghfoyster Registered Posts: 13 Regular contributor ⭐ ? ⭐
    But I'm not doing my friends accounts....My client is letting his space from my friend. I don't think I need to be objective, I just think it requires confidentiality as I know something my friend clearly doesn't. Anyway I've sent this off to be marked now so we will see:001_unsure:
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