CAF-6 · Chapter 13 · Question 4 of 15
Which fundamental principle is threatened if an accountant uses confidential insider information about an impending lucrative merger to buy shares in the company before the news goes public?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Confidentiality
Explanation
The principle of confidentiality prohibits a member from using confidential information acquired as a result of professional and business relationships for their personal advantage or the advantage of third parties.
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