Question

In which of the following circumstances would a CPA be bound by ethics to refrain from disclosing

any confidential information obtained during the course of a professional engagement?
A. The CPA is issued a summons enforceable by a court order that orders the CPA to present
confidential information.
B. A major stockholder of a client company seeks accounting information from the CPA after
management declined to disclose the requested information.
C. Confidential client information is requested as part of a quality review of the CPA's practice by a
review team authorized by the AICPA.
D. An inquiry by a disciplinary body of a state CPA society requests confidential client information.

Answer 1

A CPA would be bound by ethics to refrain from disclosing confidential information in court-ordered situations, disciplinary inquiries, and quality reviews.

Step-by-step explanation:

A CPA would be bound by ethics to refrain from disclosing any confidential information obtained during a professional engagement in the following circumstances:

1. The CPA is issued a summons enforceable by a court order that orders the CPA to present confidential information. In this case, the CPA would be legally obligated to provide the information.
2. An inquiry by a disciplinary body of a state CPA society requests confidential client information. The CPA is bound by professional ethical standards to cooperate with disciplinary bodies and provide them with the requested information.
3. Confidential client information is requested as part of a quality review of the CPA's practice by a review team authorized by the AICPA. The CPA is required to maintain the confidentiality of client information, even during quality reviews.