Confidentiality agreements are very useful to prevent unauthorized disclosures of information, but they have inherent limitations and risks. Clients of CPA firms impose confidentiality agreements as a precondition to engaging the firm to perform professional services.NDAs, or non-disclosure agreements, are legally enforceable contracts that create a confidential relationship between a person who has sensitive information. This implementation guide is intended to demonstrate how to achieve conformance with the principle of confidentiality. A confidentiality agreement serves as a legal contract that prohibits the use or sharing of confidential information. An audit agreement is a legally binding document that outlines the terms and conditions of an audit. CPA firms must take care not to run afoul of professional standards if they are asked to sign nondisclosure agreements.