Do you think you need a confidentiality agreement (NDA) to protect your business ideas? Do you want a partner or partner before you regroup? You may find that not everyone is enthusiastic or ready to sign an NDA. To understand why, you need to understand how NDAs work and what happens when someone violates an NDA. Almost all entrepreneurs will reach a stage where their business will need professional advice. But what they find is that professionals, like lawyers, refuse almost everywhere to sign confidentiality agreements. It`s not because your CPA or lawyer is waiting to steal your idea. Most of them wouldn`t even have the know-how to steal your idea and recreate it if they wanted to. In recent years, NDAs have also entered the professional-client relationship in accounting. The Enron balance sheet scandal, which eventually led to bankruptcy and tarnished the reputation of audit firm Arthur Anderson between 2001 and 2002, illustrates the importance of this relationship. While accounting professionals must adhere to legal and ethical standards, they must also have the opportunity to discuss client books and accounting documents without fear of public disclosure obligations. This has led many countries and states to legislate on the protection of confidentiality or the right to use NDSAs in accounting relationships. New Zealand introduced a law in 2005 and extended it in 2008, which provides for the protection of the confidentiality of tax guidance documents. Entrepreneurs obviously want the benefits of a confidentiality agreement, but it goes further. For an entrepreneur, his business is his baby in which he has put everything.
This makes entrepreneurs very protective for their business and ideas. “Eye-catching” clauses and warranty exclusions are often present in NSDAs, but are contrary to the elements of certain certification obligations. These provisions may be intended to prohibit an audit firm from relying on information provided by the client and are contrary to the fundamental requirement that the statutory auditor must request certain explanations relating to the audit and provide direction. . . .