During an audit, a senior learns that the client is about to make a takeover bid for a listed company. The senior buys shares in the target company. Which fundamental principle is primarily breached?

Correct answer: A) Confidentiality

Explanation

Confidentiality prohibits using information obtained through professional work for personal advantage, as well as disclosing it. Using the information to buy shares breaches this principle and may also amount to insider dealing. It is not only a matter of professional behaviour, because the information was used even though it was not disclosed.