A client has omitted a significant disclosure from the financial statements.The auditor has asked the client to include the information,but the client refuses and claims the information is confidential.The position of the CPA should be that the information
A) cannot be considered confidential if it is necessary to the completeness of the financial statements.
B) cannot be considered confidential unless it can be covered by the attorney-client privilege.
C) is confidential and will only be disclosed under subpoena or for a regulatory investigation.
D) should be discussed with the audit committee to determine if the information should be disclosed.

Question

Quizplus · Accepted Answer

As per Generally Accepted Accounting Principles (GAAP), all material information should be disclosed in the financial statements. If the omitted information is necessary for completeness, it cannot be considered confidential and must be disclosed in the financial statements. The auditor can explain to the client that disclosure is necessary for the financial statements to fairly present the financial position and operating results of the company.

A Client Has Omitted a Significant Disclosure from the Financial