The Auditor Is Normally Not Permitted to Divulge Confidential Information

question 136

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 major 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:

Fear

An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.

Internal Locus

Refers to the belief that one has control over their life and outcomes, attributing success to personal abilities and efforts.

External Locus

A belief that one's life outcomes are generally determined by external forces or circumstances beyond personal control.

Self-Actualized Potential

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.