The Ethical Reasoning Process of Auditors in a Client's Confidential Matter:
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The Code of professional conduct issued by Accountancy
bodies prohibits Accountants/ Auditors from breaching the rule of
confidentiality. Auditors who are · members of the accountancy
profession in Nigeria are not allowed to disclose any confidential
information concerning their clients without the due permission of the
client. However, there are certain exceptions to the rule. Auditors may
disclose information of his client without permission in response to a
legitimately issued and enforceable subpoena. This study was
conducted to investigate the reasoning process of auditors in Nigeria
when faced with an ethical dilemma involving sensitive client
information. The survey approach, involving three scenarios was
used. The findings show that auditors usually adhere to the code of
professional conduct in taking decisions. The study also shows that
decisions taken in line with the code are not always in accord with
good ethical reasoning. It is therefore recommended that the ·
accountancy profession needs to emphasize the greatest 'good
criterion' in drawing up codes of ethics for members.
Keywords
HF5601 Accounting