Richi JainRichi Jain asked 3 years ago

Hello SirIn practice manual ch-1, Q-49b, it was written in the conclusion part it was written that it is at auditor;s discretion to make portion of, or extract from his working paper to third party which seems incorrect. How can an auditor give this access without obtaining permission from client.Kindly clarify.

1 Answers
RaviRavi Staff answered 3 years ago

Hello Richi
Below is extract from same answer
from middle of answer
“the auditor should respect the confidentiality of the information obtained and should not disclose any such information to any third party without specific authority or unless there is a legal or professional duty to disclose”.
Therefore, it is auditor’s responsibility to provide access to his audit working papers to Regulators whereas it’s at auditor’s discretion, to make portions of, or extract from his working paper to third parties.
here they are saying no to third parties but yes to regulators, to be more specific and accurate, he can share with regulator if clearly and expressly law says auditor can share particular information, like fraud reporting in company act 143(12) 

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