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12. Your audit client recently suffered a huge loss when a large customer discontinued doing...

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Accounting

12. Your audit client recently suffered a huge loss when a large customer discontinued doing business with your client after receiving defective merchandise. Due to this loss, your client is struggling to survive. Your client does not want other customers to find out about its production and financial difficulties. However, in accordance with accounting standards, you are required to disclose that you have substantial doubt about this client remaining a viable going concern. Your client has threatened to hold you responsible if you base your going concerned disclosure on confidential information about its liquidity that you learned during the course of the audit. Would disclosure of this clients financial condition violate your duty of confidentiality?

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