Which of the Following Statements Regarding Confidentiality Principles Is FALSE

question 43

Multiple Choice

Which of the following statements regarding confidentiality principles is FALSE?

• A)The general principle of confidentiality is that a PA must not disclose any confidential information without the specific consent of the client.
• B)These principles allow a PA to ignore the obligation to comply with a validly issued subpoena or summons.
• C)Members of any professional association involved with professional practice reviews may not disclose any confidential client information that comes to their attention in carrying out those reviews,but neither should it restrict any exchange of information that is necessary for the review.
• D)Confidential information is information that should not be disclosed to outside parties unless demanded by a court or an administrative body with the power to do so.

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Definitions:

Tax Deductible

Expenses that can be subtracted from gross income to reduce the taxable income.

Warranty Liability

An obligation reported on a company's balance sheet that represents the estimated costs of fulfilling the terms of warranties offered on products sold.

Deferred Tax

The amount of income tax payable/recoverable in future reporting periods in respect of temporary differences and tax losses.

Balance Date

The date on which a company's financial year ends and financial statements are prepared to reflect the company's financial position.