AAA – Nov 2011 – L3 – SA – Q5 – Ethical Issues in Auditing

Identifies exceptions where auditors may not disclose a client's confidential information.

Question

Auditors can disclose the client’s confidential information for the following reasons EXCEPT:

A. Auditors know client has committed terrorist offence
B. Information is required by the auditor for another client
C. Auditors suspect client has committed treason
D. There is public duty to disclose
E. Disclosure is needed to protect auditor’s own interest

Answer

Explanation: The answer is B. Information is required by the auditor for another client. Confidentiality prohibits auditors from using or disclosing client information for purposes related to another client. Disclosures may be permitted in cases involving public duty, legal requirements (e.g., terrorism or treason), or the protection of the auditor’s own interests, but not for the benefit of a different client.

Tags: Auditor Disclosure, Client Information, Confidentiality, Ethics, Legal Requirements
Level: Level 3

Topic: Ethical Issues in Auditing
Series: NOV 2011

Uploader: Dotse