Final answer:
A CPA can disclose confidential client information without consent in certain cases: to another CPA upon the sale of the CPA's tax practice, to another CPA firm in cases of suspected tax return irregularities, and to a state CPA society quality control review board.
Step-by-step explanation:
A CPA (Certified Public Accountant) is permitted to disclose confidential client information without the consent of the client in specific circumstances. These circumstances are usually well-defined by professional standards and regulations that govern the practice of public accounting. Disclosure without consent may be allowed:
- To another CPA who has purchased the CPA's tax practice, as part of the client records needed to continue the services. This is typically done under a confidentiality agreement.
- If the information concerns suspected tax return irregularities, another CPA firm may be informed, especially if this firm is involved in a peer review or quality control process.
- To a state CPA society voluntary quality control review board as boards are designed to maintain and improve the standards of the accounting profession and can require access to certain information to perform their duties effectively.
However, these permissions are bound by legal and professional ethical guidelines, and CPAs must always be careful to adhere to these when considering the disclosure of client information.