COLEGIO DE SAN JUAN DE LETRAN
COLEGIO DE SAN JUAN DE LETRAN CA
SCHOOL OF BUSINESS MANAGEMENT AND ACCOUNTANCY
AUDITING AND ASSURANCE SERVICES
CASE ANALYSIS
Case Name: Freescale Semiconductor, Inc Date: November 29, 2014
PART I. FACTS
PART II. CASE PROBLEM AND SOLUTIONS
1. Identify the specific circumstances under which auditors are allowed to provide confidential client information to third parties.
Under the Code of Ethics for Professional Accountants in the Philippines, Auditors are allow to provide confidential client information to third parties when (a) Disclosure is permitted by law and is authorized by the client or the employer, (b) Required by law such as Disclosure of documents or other provisions of evidence in the course of legal proceedings; or to the appropriate public authorities of infringement of the law that come to light and (c) There is a professional duty or right to disclose, when not prohibited by law such as to comply e with the quality review or to respond to an injury or investigation of a member or professional body, to protect the professional interests of a professional accountant in legal proceedings or to comply with the technical standards and ethics requirements.
2. Suppose that you and a close friend are employed by the same accounting firm. You are assigned to the firm’s audit staff, while your friend is a consultant who works on M&A engagements. What would you do under the following circumstances (1) your friend discloses to you highly confidential “market-moving” information regarding a soon-to-be announced merger; (2) your friend not only discloses such information to you but also informs you that he or she plans to use it to make a “quick” profit in the stock market? In your responses, comment on your ethical responsibilities.
In both circumstances I would tell my friend that his actions are in bad faith, contrary to law, morals, good customs and public policy and he is a disgrace and a spoil in our
SCHOOL OF BUSINESS MANAGEMENT AND ACCOUNTANCY
AUDITING AND ASSURANCE SERVICES
CASE ANALYSIS
Case Name: Freescale Semiconductor, Inc Date: November 29, 2014
PART I. FACTS
PART II. CASE PROBLEM AND SOLUTIONS
1. Identify the specific circumstances under which auditors are allowed to provide confidential client information to third parties.
Under the Code of Ethics for Professional Accountants in the Philippines, Auditors are allow to provide confidential client information to third parties when (a) Disclosure is permitted by law and is authorized by the client or the employer, (b) Required by law such as Disclosure of documents or other provisions of evidence in the course of legal proceedings; or to the appropriate public authorities of infringement of the law that come to light and (c) There is a professional duty or right to disclose, when not prohibited by law such as to comply e with the quality review or to respond to an injury or investigation of a member or professional body, to protect the professional interests of a professional accountant in legal proceedings or to comply with the technical standards and ethics requirements.
2. Suppose that you and a close friend are employed by the same accounting firm. You are assigned to the firm’s audit staff, while your friend is a consultant who works on M&A engagements. What would you do under the following circumstances (1) your friend discloses to you highly confidential “market-moving” information regarding a soon-to-be announced merger; (2) your friend not only discloses such information to you but also informs you that he or she plans to use it to make a “quick” profit in the stock market? In your responses, comment on your ethical responsibilities.
In both circumstances I would tell my friend that his actions are in bad faith, contrary to law, morals, good customs and public policy and he is a disgrace and a spoil in our