The Auditor Is Normally Not Permitted to Divulge Confidential Information

question 84

Multiple Choice

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 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.

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Definitions:

Evolutionary Stable Strategy

A strategy in a game theoretical model that cannot be invaded by any alternate strategy if it is adopted by a population.

Saints

Individuals recognized for their holiness, virtue, and often miraculous deeds within many religious traditions, revered and often canonized after death.

Crooks

Persons who are dishonest or engage in illegal activities.

Time-Discounted Profits

The present value of profits expected in the future, adjusted for the time value of money.