Keeping client information confidential The rule on confidentiality is intended to protect the client's information. The rule, however, does not apply in certain circumstances. A. Explain the rule on confidentiality. B. Identify the circumstances in which the rule of confidentiality does not apply

Answer 1

A) The rule on confidentiality exists to ensure a free flow and sharing of information between the client and the auditor. The client must be assured that the auditor will not communicate confidential information to outside parties.

B) The rule shall not be construed (1) to relieve members of their professional obligations to make disclosures required by GAAP, (2) to affect members' obligation to comply with subpoenas or summonses, (3) to prohibit review of a member's professional practice under AICPA or state CPA society authorization, or (4) to preclude members from initiating a complaint or responding to any inquiry made by a recognized investigative or regulatory body.