What is Confidential client information?
In short
Members in public practice must not disclose confidential client information without the client's specific consent, apart from listed exceptions.
Key takeaways
- Exceptions include complying with a subpoena or summons, peer review, professional ethics investigations and applicable laws.
- Members also may not use client information to their own advantage.
- Information shared with a third-party service provider needs safeguards, and sometimes client consent.
Where it's tested
AUD: Professional Ethics & Independence — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An audit senior on the engagement team owns 10 shares of the audit client's common stock, worth approximately $300. What is the effect on independence?