Normally the Auditor Is Not Permitted to Divulge Confidential Information

question 12

Multiple Choice

Normally the auditor is not permitted to divulge confidential information obtained from a client.Which of the following situations would be a violation of this requirement?

• 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:

Demand Uncertainty

Refers to the unpredictable nature and variability of customer demand for products or services, making it challenging to plan effectively.

Product Availability

Refers to the extent to which goods or services can be bought from a company at any given time.

Cost of Stocking Out

The financial loss and potential customer dissatisfaction resulting from insufficient inventory to meet demand.

Cutaneous Membrane

The skin, the largest organ of the body, serving as a protective barrier against environmental hazards and pathogens, and involved in sensation and temperature regulation.