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Non Disclosure Agreement For Auditors for the United Kingdom

Non Disclosure Agreement For Auditors Template for England and Wales

A legally binding agreement governed by the laws of England and Wales, designed to protect confidential information disclosed during audit procedures. The agreement establishes the obligations of auditors to maintain confidentiality of sensitive business information, financial records, and operational details encountered during their audit work, while ensuring compliance with professional standards and regulatory requirements.

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Non Disclosure Agreement For Auditors

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What is a Non Disclosure Agreement For Auditors?

The Non-Disclosure Agreement For Auditors is essential when engaging external or internal auditors who will have access to sensitive company information. This agreement, governed by English and Welsh law, establishes clear parameters for handling confidential information during audit procedures, ensuring compliance with professional standards while protecting the company's sensitive data. It is particularly crucial for maintaining confidentiality during financial audits, operational reviews, and compliance assessments.

What sections should be included in a Non Disclosure Agreement For Auditors?

1. Parties: Identification of the contracting parties (auditor and company)

2. Background: Context of the audit engagement and need for confidentiality

3. Definitions: Key terms including Confidential Information, Permitted Purpose, Representatives

4. Confidentiality Obligations: Core obligations regarding handling of confidential information

5. Permitted Disclosures: Circumstances under which confidential information may be disclosed

6. Return of Information: Obligations regarding return or destruction of confidential information

7. Duration: Term of confidentiality obligations

What sections are optional to include in a Non Disclosure Agreement For Auditors?

1. Data Protection: Required when personal data is involved in the audit - includes GDPR and Data Protection Act 2018 compliance provisions

2. International Transfers: Provisions for cross-border data transfers and compliance with international data protection regulations

3. Regulatory Compliance: Specific regulatory requirements for regulated industries including FRC, ICAEW, and sector-specific regulations

What schedules should be included in a Non Disclosure Agreement For Auditors?

1. Schedule 1: Scope of Audit: Detailed description of audit scope and activities

2. Schedule 2: Authorized Representatives: List of personnel authorized to access confidential information

3. Schedule 3: Information Security Requirements: Specific security measures for handling confidential information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions


























Clauses






















Industries

Data Protection Act 2018: UK's implementation of GDPR, governing how personal data must be handled, processed, and protected during auditing processes

Companies Act 2006: Key legislation containing provisions about statutory audits, disclosure requirements, and corporate governance

Freedom of Information Act 2000: Legislation governing public access to information held by public authorities, which may impact audit disclosure obligations

Official Secrets Act 1989: Relevant for government-related audits, governing the handling of classified or sensitive government information

FRC Requirements: Financial Reporting Council's regulatory framework setting standards for auditors and ensuring audit quality

International Standards on Auditing (UK): Professional standards that UK auditors must follow when conducting audits

Ethical Standards for Auditors: Professional ethical guidelines that govern auditor behavior, independence, and professional conduct

ICAEW Guidelines: Professional standards and guidance issued by the Institute of Chartered Accountants in England and Wales

Common Law Confidentiality: Legal principles developed through case law regarding duties of confidentiality and protection of sensitive information

Financial Services and Markets Act 2000: Regulatory framework for financial services industry, relevant when auditing financial institutions

Sarbanes-Oxley Act: US legislation with international impact, particularly relevant for UK companies listed on US exchanges

Employment Rights Act 1996: Employment law framework relevant when the auditor is an employee rather than an external contractor

Public Interest Disclosure Act 1998: Legislation protecting whistleblowers, including auditors who may need to report wrongdoing

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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