Asked by autumn hager on Jun 28, 2024
Verified
In what situations is the accountant-client privilege recognized?
A) It is only recognized in federal court proceedings.
B) It is recognized by virtue of the common law in most states.
C) It is recognized only in those states that have enacted statutes creating such a privilege.
D) It is recognized in most states by reason of court decisions.
Accountant-Client Privilege
A legal principle that protects the confidentiality of conversations and documents exchanged between a client and their accountant.
Federal Court
The system of courts at the national level in a country, which deals with legal matters that are under the authority of the federal government.
Common Law
A body of unwritten laws based on legal precedents established by the courts, influencing and governing the decision-making process in novel cases.
- Comprehend the nuances of the privilege between accountants and their clients, including the ethical circumstances under which confidential information may be shared.
Verified Answer
VR
Victoria RochelleJul 02, 2024
Final Answer :
C
Explanation :
The accountant-client privilege is recognized only in those states that have enacted statutes creating such a privilege. Unlike the attorney-client privilege, which is widely recognized both in common law and by statute, the accountant-client privilege does not have a broad, uniform basis in common law across the states.
Learning Objectives
- Comprehend the nuances of the privilege between accountants and their clients, including the ethical circumstances under which confidential information may be shared.