Disclosing information to an auditor risks waiving
privilege over legal advice and related material, thereby
potentially exposing the material to the world at large –
including class action plaintiffs.
Courts have found that disclosure of pre-existing privileged
material to an auditor will not result in a waiver at large if
conditions of confidentiality and privilege are maintained and it
is made for the limited purpose of the audit (limited
waiver).1 When access to privileged information is
requested, we recommend deploying an incremental approach where
privileged material is only disclosed to the extent necessary and
care is taken throughout the process to preserve privilege.
Australian companies (other than small proprietary companies and
certain companies limited by guarantee) must have their accounts
(or financial report) audited at the end of every financial year.
In conducting this process, an auditor will often request access to
a company's legal
