Confidential Client Information Can Be Disclosed Outside the Entity Without

question 79

Multiple Choice

Confidential client information can be disclosed outside the entity without violating the AICPA Code of Professional Conduct in each of the following situations except when:

• A) It is reported to the SEC under Section 10A of the Securities Exchange Act
• B) It is to comply with the Private Securities Litigation Reform Act
• C) It protects the auditor's accounting for fraud and illegal acts
• D) It is allowed for under the Dodd-Frank Financial Reform Act

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Definitions:

Deadweight Loss

Deadweight loss is a loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Marginal Cost

The increase or decrease in the total cost incurred by producing one additional unit of a product or service.

Socially Efficient

A situation in which resources are allocated in a way that maximizes the welfare of society as a whole.

Price Discriminating

A pricing strategy that involves charging different prices for the same product or service to different customers, based on what the seller believes each customer can afford or is willing to pay.