AAA – Nov 2012 – L3 – SA – Q1 – Regulatory Framework and Professional Standards

Understanding conditions under which an auditor may disclose client’s confidential information.

Question

An auditor can disclose the client’s confidential information for the following reasons EXCEPT:
A. Auditor suspects that the client has committed treason
B. When there is a public duty to disclose
C. Disclosure is needed to protect the auditor’s interest
D. When the client has committed an act of felony
E. When information is formally requested by another client

Answer

E. When information is formally requested by another client

Explanation:
This option is incorrect because an auditor cannot disclose a client’s confidential information to another client simply based on a formal request. Disclosure of confidential information is typically allowed only under legal obligations, public interest, or when necessary to protect the auditor’s interest, as outlined in the ethical standards for auditors.

Tags: Auditor’s Disclosure, Confidentiality, Ethics, Regulatory Framework
Level: Level 3

Topic: Regulatory Framework and Professional Standards
Series: NOV 2012

Uploader: Dotse