Auditor Perspectives on Confidentiality: A Qualitative Investigation Examining the Differences in European Auditors' Opinions

Abstract

This exploratory research examines the existence of variations in the application of the principle of auditor confidentiality within a western European setting. A case study method was used employing a series of open ended questions to isolate participants' views on the importance of and factors influencing the practice of keeping client information confidential. The interviews yielded substantially different views on the application of the principle of confidentiality when placed in the context of a dilemma situation. Participants were partners and managers from four large international accounting firms located in eight western European countries (Denmark, France, Ireland, Italy, Spain, Sweden, the Netherlands and the United Kingdom). The findings imply that, although similar codes regarding confidentially exist, in practice there may be substantial variations in western European auditors' interpretations of the codes, resulting in potential audit opinion variations despite similar factual situations. Understanding this type of variation is critical to stakeholders in the international financial communities who rely on auditors to attest to the accuracy of the financial statements for decision making purposes.