Auditors May Disclose Confidential Information to a Third Party If

question 58

Multiple Choice

Auditors may disclose confidential information to a third party if:

• A) they have specific authority to do so.
• B) there is a professional duty to do so.
• C) there is a legal duty to do so.
• D) all of the above

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Definitions:

Consideration

Something of value that is given by both parties to a contract as the agreed-upon price or exchange for the contractual promises.

Valid Consideration

An essential element of a contract, which constitutes something of value exchanged between the contracting parties.

Forbearance

Forbearance is the action of refraining from enforcing a right, obligation, or debt in a legal agreement, usually as an act of leniency by the creditor.

Sufficient Consideration

A legal concept indicating that the value exchanged in a contract is recognized as adequate, making the contract binding and enforceable.