The Duty of Confidentiality Arises When

question 14

Multiple Choice

The duty of confidentiality arises when:

• A) A professional accountant and client agree to it in their contract for services
• B) A professional accountant expressly agrees to abide by the AICPA's Code of Professional Conduct
• C) Automatically for a professional accountant under the IFAC Code of Conduct, but not under the AICPA's Code of Professional Conduct
• D) Automatically for a professional accountant, under both the IFAC and AICPA Codes of Conduct

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Definitions:

Acquiring Company

A company that purchases or acquires another company, typically to expand its operations or enter new markets.

Insolvent

A firm is technically insolvent when it can’t pay its short-term debts. Legal insolvency implies the firm’s liabilities exceed its assets.

Liabilities

Financial obligations or debts that a company owes to others, such as loans, accounts payable, and mortgages.

Assets

Economic resources owned or controlled by a business or individual, expected to produce future economic benefits.