Which of the following represents a situation in which auditors may disclose client information to outside parties?
A) Bringing working papers to a professional CPA workshop as an example of quality work.
B) Complying with a validly issued and enforceable subpoena or summons.
C) Showing the client's bank statement to a neighbor who is a shareholder to emphasize its cash position.
D) Explaining to the local television news station why the client is likely to miss payroll in the forthcoming periods.

Question

Quizplus · Accepted Answer

Under certain circumstances, auditors may be required to comply with a validly issued and enforceable subpoena or summons that requests client information. This may include situations where the information is required as part of a legal process, such as a lawsuit or investigation. However, auditors should take care to only disclose the minimum amount of client information necessary to comply with the subpoena or summons. They should also inform the client of the disclosure, unless legal or ethical obligations prevent them from doing so. A, C, and D are not appropriate situations for disclosing client information.

Which of the Following Represents a Situation in Which Auditors