Advertising and Confidentiality

Question 1

List some examples of false, misleading, or deceptive acts.

Answer 1

1. )Creating false or unjustified expectation of favorable results
2. )Implying the ability to influence a court or agency
3. )Estimating a fee, knowing that the amount charged will likely be much higher

Question 2

List at least two exceptions to the general rule that members may not disclose client confidences without specific consent of the client.

Answer 2

Any of these exceptions:

1. )To comply with valid summons or subpoena
2. )As part of AICPA or state review of a member’s practice
3. )To initiate or respond to a complaint from AICPA or state board
4. )To initiate, pursue, or defend a lawsuit

Question 3

Besides their own, whose advertising might members be responsible for?

Answer 3

That of third parties for whose customers or clients the member renders services

Question 4

If a member withdraws from a tax engagement due to irregularities in a client’s return and is contacted by a potential successor firm, what should the member do?

Answer 4

Suggest the successor firm ask the client for permission that allows the member to discuss all matters freely with the successor.

Question 5

When outsourcing work, what two things should a member do before disclosing confidential information to a third‐party service provider?

Answer 5

1. )Contractually bind the third‐party service provider to maintain confidentiality and ensure that the third‐party service provider has proper procedures in place.
2. )Obtain specific consent from the client for the disclosure.

Question 6

When is it not permissible to disclose the name of a member’s client?

Answer 6

When to do so would disclose confidential information