Exam 9: Confidentiality

During the course of working as an external auditor,you discovered that your audit client is going to build a new luxury ski resort in rural Utah.As a result,you purchased a vacation home near that resort in the expectation that housing prices will benefit from the announcement of a luxury resort being built nearby.Your action:

If a paid tax return preparer mistakenly discloses qualitative information,such as a client's address,but does not disclose any financial information appearing on the client's tax return,the tax return preparer:

The duty of confidentiality applies to:

During the course of working on a complex project,a client shared confidential information with its CPA.The CPA did a superb job,but the client,however,has never paid the CPA for her services.The CPA anticipates that,if she initiates a lawsuit to collect the amount due,the client will claim that the task was simple and the CPA's performance was below standard.If the CPA wants to introduce the nature of the work done as evidence in her court action to collect unpaid fees:

A CPA' duty of confidentiality ends when:

A CPA specializes in helping businesses evaluate their future prospects and create successful budgets.As part of this process,the CPA invariably learns confidential information about a company's future.To avoid potential liability,the CPA's engagement letter states upfront that "all information learned after the commencement of services shall not be subject to the duty of confidentiality." This CPA:

CPAs who are full-time employees of a corporation and focus on the preparation of earnings forecasts and projections invariably learn confidential information about their employer's future prospects.Is such an employee subject to the duty of confidentiality?

A CPA cannot be held liable for violating the duty of confidentiality if:

When does a CPA's duty of confidentiality begin? When does it terminate?

If a CPA violates the duty of confidentiality,who may hold it accountable?

Upon returning home after a long workday,a CPA told her husband that she "had a lunch meeting earlier that day with the Controller of her new client,Abnomacious,Inc.,and that the Controller ate a really expensive seafood platter." Disclosure of this information to her husband:

The federal tax law grants CPAs acting as tax advisors:

A CPA wants to understand the difference between the duty of confidentiality and the accountant-client privilege.She lives in a state in which an accountant-client privilege has been enacted.A key difference between the duty of confidentiality and the accountant-client privilege is that:

In accordance with the duty of confidentiality,when is client information considered to be confidential?

The AICPA Code of Professional Conduct has established for professional accountants:

When should a tax advisor encourage a client to seek legal advice?

A client called a CPA at her home one evening to discuss an urgent matter.The client called at a time when the CPA was eating dinner with her family.Due to the unexpected and potentially urgent nature of the call,the CPA answered the phone call while sitting at the dinner table.As a consequence,some of the CPA's family members overheard key aspects of the phone call.Did the CPA violate the duty of confidentiality?

Is there a federal accountant-client privilege? What does it cover?

What is the difference between the duty of confidentiality and the accountant- client privilege?

What types of information are protected by a professional accountant's duty of confidentiality?