CS Professional · Internal and Forensic Audit · Practices related to Internal Auditing
An internal auditor at Bharat Steels learns during a review that the company is negotiating a confidential acquisition. A friend at another firm asks him casually about expansion plans. Which response best follows the principle of confidentiality?
He should decline to disclose anything. Confidentiality obliges internal auditors to protect information acquired during their work and not reveal it without proper authority or a legal duty. Hints, a friend's promise of secrecy or self-decided timing do not justify disclosure.
- AShare only general hints without figures
- BShare the information if the friend promises secrecy
- CDecline to disclose, since information acquired in the course of work must not be revealed without proper authorityCorrect
- DShare it after the board meeting without seeking approval
Explanation
Confidentiality requires auditors to protect information obtained during work and not disclose it without legal or professional duty or proper authority. Hints or promises of secrecy do not provide authority, and disclosure without approval remains a breach.
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