Question

Auditors may disclose confidential information to a third party if:

A) There is a legal duty to do so. B) They have specific authority to do so. C) There is a professional duty to do so. D) all of the above

Answer 1

Correct Option is D) All of the above.

Explanation:

Any confidential information( the significant information related with business that are non-public) must be kept safe within the boundaries and must not be transferred to any unauthorised personnel by any means.The responsible auditor must keep in mind that with whom all this information can be shared.But there are certain circumstances in which the auditor may disclose the confidential information to a third party ,

i) The law gives the permission (legal duty)

ii) Authorised by the owner or the employer of the company (specific authority)

iii) Becomes professional duty of the auditor that is auditor has all the right to do so. (professional duty)

Therefore,we can see that all the three options are among the stated circumstances ,hence in above all cases the auditor may disclose the confidential information to a third party.