The International Ethics Standards Board for Accountants (IESBA) has published new requirements regarding the disclosure of suspected illegal acts committed by a client or employer.

The proposals outline the circumstances in which a professional accountant is required or expected to breach confidentiality, one of five fundamental principles in the Code of Ethics for Professional Accountants (the Code), and disclose the act to an appropriate authority.

The Exposure Draft (ED), Responding to a Suspected Illegal Act, proposes adding two new sections addressing illegal acts to the Code - one each for professional accountants in public practice and professional accountants in business - and several revisions to other related sections. The new sections clearly delineate the expected course of action for a professional accountant to take if those charged with governance do not respond to the issue appropriately.

'Breaching confidentiality is not something to be taken lightly,' said Juergen Holmquist, chair of the IESBA. 'However, when the consequences of non-disclosure are potentially harmful to individuals or society, confidentiality must be overridden. Accountants have an important role to play in protecting the public interest and enabling authorities to take appropriate action.'

The IESBA invites all stakeholders to comment on its proposals in the ED. To submit a comment, go to IESBA .

Comments on the ED should be submitted by December 15 2012.