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

The auditor's main objective is to provide a complete and accurate financial statement to the users. If any significant disclosure is omitted, it may mislead the users. Therefore, the auditor should insist on including the information in the financial statement as it is necessary for the completeness of the statements. Confidentiality cannot be used as a reason to omit material information from the financial statements.

A Client Has Omitted a Significant Disclosure from the Financial