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Chapter 2 woo Question 8 of 50 -/1 View Policies Current Attempt in Progress Charles is at a neighbourhood party with several of his roommates. Over a few beers, Charles gets into a conversation with a neighbour, William, about mutual acquaintances. Charles is a senior auditor with a large accounting firm (although he tells William that he is a partner at the firm) and William works for a large bank. During the conversation, Charles and William discover that they have both had professional dealings with a particular family-owned manufacturing company. William reveals that the company's line of credit is about to be cancelled because of some irregularities with the security. Charles is concerned to hear this news because he has just participated in the company's financial statement audit and there was no indication of any problems with its borrowings. However, as Charles explains to William, he has his doubts about the patriarch of the family, who Charles believes is having an affair with his personal assistant. Charles also tells William that the family has quietly increased its shareholdings in a listed company that supplies components to the family's manufacturing company. The components manufacturing company is about to announce to the share market that it has just won a very large and very profitable contract with a Chinese company. Which of the following statements describe the ethical principles discussed in this scenario? Charles has breached confidentiality by telling William he is a partner in the audit firm. When Charles stated he has doubts about the patriarch of the family, this is a breach of professional competence. O Revealing information regarding the contract is a breach of confidentiality. O Charles' objectivity is breached by discussing this audit client with a neighbour. O) Charles and William can discuss the audit client because both Charles and William work for companies who service the audit client. Charles is not acting professionally by repeating the gossip that the patriarch is having an affair. eTextbook and Media Save for Later Attempts: 0 of 3 used