The auditor is normally not permitted to divulge confidential information obtained from a client.Which of the following situations would be a violation of this standard?
A)To respond to the information request of a major shareholder.
B)To respond to a quality review request of the state board of accountancy.
C)To initiate a complaint with the AICPA's ethics division.
D)To ensure adequate disclosure in accordance with GAAP.

Question

Quizplus · Accepted Answer

Divulging confidential information to a major shareholder would be a violation of the auditor's duty to maintain client confidentiality. The other options do not involve disclosing confidential information to outside parties. B and D involve responding to requests from regulatory bodies or ensuring compliance with accounting standards, while C involves reporting potential ethical violations internally within the profession.

The Auditor Is Normally Not Permitted to Divulge Confidential Information