A professional accountant is auditing client A and providing consulting services to client B. Both clients are in the same industry. If the professional accountant uses specific information from client A's audit to prepare a business plan for client B, he will be violating which of the following fundamental principles?

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Quizplus · Accepted Answer

Confidentiality is the fundamental principle that protects the disclosure of client information. If the professional accountant uses specific information from client A's audit to prepare a business plan for client B, he would be violating client A's confidentiality. This would damage the client's trust, reputation, and could lead to legal action. Therefore, a professional accountant should not use confidential information from one client to benefit another client without the prior written consent of the original client.

A Professional Accountant Is Auditing Client a and Providing Consulting