Another provision, often contained in THE ARAs or confidentiality rules, is the obligation for the company to compensate the customer for all costs in the event of a breach of its obligations in the NDA or in the rules of confidentiality. Any obligation to compensate the client must always be carefully considered. (See “Professional Liability Spotlight: Deflecting Clients` Defense and Indemnity Requests,” April 2017, for further discussions on the subject.) Given these limitations (and the other more detailed provisions of section 114 of the code), the signing of a confidentiality agreement may not be necessary. When reviewing a confidentiality agreement, you must ensure that it does not prevent you from fulfilling your legal and professional obligations. For example, it would be inappropriate to sign a confidentiality agreement that could prevent you from fulfilling your obligation to report misconduct or your obligation to provide information requested by IcaEW commissions (in accordance with disciplinary laws). Similarly, it would not be acceptable to sign a confidentiality agreement that could prevent you from complying with your legal and ethical obligations regarding real or alleged money laundering or other illegal acts. Clients and interested individuals may need tax, accounting and research and development advice for proprietary products or services. As a result, the CPA may be invited to sign an NOA before a discussion can begin on the scope of services. As a result, the NDA may extend the scope of confidentiality obligations beyond the “customer confidential information rule.” It may, for example, contain requirements: confidentiality agreements or confidentiality agreements have long been an important protection for confidentiality in the economy.
When potential business partners or a company and employees discuss confidential information, NDAs help protect business-owning information. These agreements have become more common in accounting to protect the interests of accountants, clients or the companies they represent. This is particularly important for small businesses, which often have close ties with accountants and internal departments.