Question

When a CPA firm has two audit clients that transact business with each other, should the two audit teams be allowed to share information regarding their clients, since such sharing of data might result in the auditors' obtaining a more accurate picture of each client's financial condition? Discuss the advantages and disadvantages of amending the client confidentiality rule to allow communication between audit teams under such circumstances

Answer 1

Answer : the responsibility of auditor is not to disclose any confidential information to outsiders unless it is permitted by law

He should also possess certain qualities such as  

Tact

Caution

Good temper

Patients

Common sense

Clear headedness

Realiability

Trust

Responsibilityes of auditor are

An auditor conducting an audit in accordance with SAs is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error. As described in SA 200, “Objective and General Principles Governing an Audit of Financial Statements16,” owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements will not be detected,
even though the audit is properly planned and performed in accordance with the SA