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CS Professional · Internal and Forensic Audit · Basic Concepts of Forensic Audit

While investigating suspected bribery at Nair Infra Ltd., the forensic auditor interviews a junior accountant, who casually reveals sensitive client details. Later a journalist asks the auditor for a comment on the case. What should the auditor do?

The auditor should decline to comment and keep the matter confidential, disclosing information only to authorised parties or where the law requires it. Informal briefings or sharing working papers would breach confidentiality and could prejudice the investigation.

  1. AShare only the details already revealed by the accountant, since they are in the public domain
  2. BDecline to comment and maintain confidentiality, disclosing information only to authorised parties or when legally requiredCorrect
  3. CGive an off-the-record briefing to protect the company's reputation
  4. DProvide the working papers to the journalist after removing names

Explanation

Confidentiality obliges the auditor not to disclose client information to unauthorised persons, except where law or authorised process requires. Informal briefings or sharing working papers breach this duty and may prejudice the investigation.

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