Law and regulations/ Confidentiality

So many articles and so much to read – please give me a link to the articles to which you refer. Thanks

Thanks for the link

I’ve read it

My lectures already incorporate most of what is written in the article and particularly the exception to the requirement of confidentiality that has always existed … an auditor has always been allowed to disclose to the relevant authorities where any NOCLAR is contrary to the interest of the public

But before following the public interest route it was always advised that the auditor should take legal advice

This is something that I have been saying in lectures since time immemorial (Am I ahead of my time?)

Has anything changed? Not that I’m aware of!

Confidentiality still exists as a fundamental principle. But the article suggests that, instead of walking away from a client where NOCLAR is suspected, the auditor should follow a more aggressive route and disclose to the relevant authorities (after taking legal advice)

In addition, it has always been the case that disclosure of these suspicions should be made to any prospective new replacement auditor and such disclosure is protected by the rules of professional privilege

I remember saying exactly that, during lectures, in the early 1980s!

Has much changed? Not really. The document seeks to ‘raise the bar’ with reference to the protection available for the auditor where the disclosure route is followed and thus encourages auditors to disclose rather than simply walk away (resign)

But confidentiality remains. As also does legal advice. And so too does the public interest exemption. And communication of any professional reasons with the incoming auditors

New is the inclusion of communication with those charged with governance

There’s also a suggestion that those persons that are contemplating NOCLAR may think again before taking that non-compliant action in the knowledge that our ever-vigilant auditor may blow the whistle rather earlier than may have been the case before the revisions

Sensibly, for the purposes of P7, I believe that you should try to find something to say for each of the 6 sub-headings:

obtain an understanding
address the matter
communication in a group context
determine whether further action is needed
determine whether to disclose to a competent authority
documentation

OK?