ACCA Strategic Professional · Advanced Audit and Assurance (International) · Professional and ethical developments
A junior auditor at Quill Audit tells friends at a social event that a listed client is likely to report a large loss, before the results are announced. Which fundamental principle has been breached?
Confidentiality has been breached. The auditor disclosed non-public information about the client's expected results, which was obtained through professional work, to people with no right to receive it and without proper authority, and no legal or professional duty required that disclosure.
- AProfessional behaviour
- BConfidentialityCorrect
- CObjectivity
- DProfessional competence and due care
Explanation
Disclosing client information obtained through professional work to third parties without authority breaches confidentiality. Although professional behaviour might also be damaged in reputation terms, the most direct breach is confidentiality, since the information was acquired in the course of the audit and was disclosed without permission or a legal or professional right to do so.
Did you get it right without looking?
One question tells you little. A timed set on Professional and ethical developments shows your real accuracy, how long you take and where you lose marks.
More Professional and ethical developments questions
- Zeta & Co, an audit firm applying the IESBA Code, discovers while auditing Orion Ltd that the finance director has deliberately under-declar…
- Keswick Audit LLP has identified, through its monitoring activities under ISQM 1, a deficiency: several engagement files lacked evidence tha…
- Orchid Plc, a listed company, is audited by Faro LLP. Faro proposes a tax advisory engagement for Orchid with a fee that depends on the amou…
- During the audit of Kestrel Components, the engagement partner notices that the finance director has provided a very detailed and persuasive…
- Hartwell & Partners audits Zeta plc, a listed entity, and has a relationship with Zeta in which fees from Zeta have represented a large prop…
- An audit team at Delmar Retail faces time pressure and is considering using a short-form conclusion on a complex estimate for warranty provi…