04.02 Privileged Communications, Confidentiality and Privacy Acts

Question 1

What are privilege laws?

Answer 1

Privilege laws prevent the party who received protected communications from using that information against the protected party in court.

Question 2

What is the AICPA’s confidential client information rule?

Answer 2

It states that a member in public practice shall not disclose any confidential client information without the specific consent of the client.

Question 3

What are elements on accountant-client privilege?

Answer 3

Only available in a small number of states; allows CPA to refuse to testify about a client; applies in both civil and criminal cases; protects all nonpublic client information in the CPA’s possession.

Question 4

What are exceptions to the rule on confidential client information?

Answer 4

Comply with subpoena or summons; comply with a quality control peer review; comply with laws and regulations; initiate, pursue, or defend against actual or potential lawsuits; initiate or respond to complaints with AICPA ethics division or trial board’ permit electronic preparation or submission of a client’s tax return; secure legal advice from an attorney.