- This topic has 3 replies, 2 voices, and was last updated 5 years ago by
.
- Posts
For which TWO of the following situations should an auditor make VOLUNTARY disclosure of confidential information?
A. If an auditor knows or suspects his client is engaged in money laundering
B. Where disclosure is made to non-governmental bodies
C. When the client has given permission
D. If an auditor suspects his client has committed terrorist offences.The answer for this question is B&C as per my Kaplan Revision Kit. But How option B is right and Why Option A & D are not correct ?
Auditor would have legal (mandatory) obligation to disclose A/D under AML/Proceeds of crime legislation.
I don’t have Kaplan materials to know why B is considered correct but I imagine what it is saying is that if an NGO has power to demand disclosure – the auditor may disclose voluntarily rather than wait for that power to be exercised.
So in the case of Options A & D there is a legal duty to disclose right? So why it didn’t become the answer of this question?
- You must be logged in to reply to this topic.