Auditing and assurance revision question and answer

Auditing and Assurance Revision Questions and Answers

Express your views as an auditor in the following case:
You are the auditor of Honey Enterprise as well as Money Enterprise. Both of the clients are garment industries. You came to know that in the previous year one of your audit trainees was paid Rs. 5,000 Money Enterprise for providing some sales related information of Honey Enterprise.

As per the ethical principles governing an auditor‟s professional responsibility cited in Code of Ethics, the auditor should maintain „Confidentiality‟ on information, which comes to the knowledge of the auditor during the course of audit. The information should not be shared with others, other than the client or as required the law of the land. In the cited case the information was provided to a competitor, which is against the basic principles of governing an audit. Therefore, the auditor should initiate action against the Audit Trainee. The auditor should also make necessary arrangements for checking these types of unethical activities to ensure confidentiality of information gained during the course of audit.

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