ASA 240 - The Auditor’s Responsibility to Consider Fraud in an Audit of a Financial Report - April 2006
Communications to Regulatory and EnforceCommunications to Regulatory and Enforcement Authorities
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Communications to Regulatory and Enforcement Authorities
110 The auditor’s professional duty to maintain the confidentiality of client information may preclude reporting fraud to a party outside the client entity. The auditor ordinarily considers obtaining legal advice to determine the appropriate course of action in such circumstances. In certain circumstances, the duty of confidentiality may be overridden by statute, the law or courts of law.[4] Where management and those charged with governance fail to take corrective action and there is no specific requirement to report the non-compliance to a third party, the auditor ordinarily seeks legal advice to determine whether the auditor’s duty of confidentiality can be overridden by disclosure of the information to the proper authority.[5]