The accounting firm of Gray & Co.did accounting work for both Regional Bank and Carter Electronics.Without Carter's knowledge or approval,Gray & Co.discussed Carter's financial problems with Regional Bank.In this situation,Gray & Co.
A)breached a legal obligation to keep all client information confidential.
B)breached a moral,but not a legal,obligation of confidentiality.
C)did not breach any obligations to its clients.
D)acted properly because it was protecting its client,Regional Bank,from possibly making an unwise loan to Carter Electronics.

Question

Quizplus · Accepted Answer

Accounting firms have a legal obligation to keep all client information confidential, and discussing Carter's financial problems with Regional Bank without their approval violated this obligation.

The Accounting Firm of Gray & Co