Answer:-
Access to the client’s documents is governed by rights of access clause which states that access to documents or information shall be allowed under the following principles:
✓ After obtaining the consent of the client.
✓Where the member has a legal duty or right to disclose the information.
✓ Where the members duty of confidentiality to the clients is override by the powers of third parties to require access to the documents.
My advice to Michael is that the auditors should write him an authorisation letter to obtain the authority from the client to permit access to the audit working papers and to allow provision of explanation to them. He should them respond with a confirmation letter that he will not be held responsible for any change to the proposed transactions. With this strict adherence to the guidelines and procedures they can go ahead and access the documents.
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