Question

To which of the following parties may a CPA partnership provide its working papers without either the client's consent or a lawful subpoena?

1) The IRS
2) The SEC
3) The PCaOB
4) The AICPA

Answer 1

Certain regulatory bodies like the IRS, SEC, and PCAOB may have the authority to access a CPA partnership's working papers without client's consent or a subpoena, while the AICPA may request papers through peer review processes.

Step-by-step explanation:

To which of the following parties may a CPA partnership provide its working papers without either the client's consent or a lawful subpoena? The answer can vary based on specific regulations and the reason why these entities are requesting the papers.

Generally, regulatory and oversight bodies such as the IRS (Internal Revenue Service), the SEC (Securities and Exchange Commission), and the PCAOB (Public Company Accounting Oversight Board) may have the statutory authority to access working papers for their respective areas of oversight without a subpoena or client consent due to regulatory requirements. The AICPA (American Institute of Certified Public Accountants), as a professional body, does not possess the same regulatory powers, but it can request working papers as part of their peer review process in which case the CPA firm typically agrees to such reviews as a condition of membership.

Answer 2

A CPA partnership may provide working papers to the IRS, SEC, and PCAOB without the client's consent or a lawful subpoena due to their regulatory authority. The AICPA does not have the authority to demand such documents without consent or legal directive.

Step-by-step explanation:

To which of the following parties may a CPA partnership provide its working papers without either the client's consent or a lawful subpoena? The correct parties to which a CPA partnership can disclose working papers without client consent or subpoena are regulatory bodies with legal authority over the accounting profession or with the jurisdiction to demand such records as part of their oversight functions.

In the United States, this can include:

The Internal Revenue Service (IRS) for tax-related investigations or audits.

The Securities and Exchange Commission (SEC) for matters related to securities laws and regulations, particularly for firms that audit public companies.

The Public Company Accounting Oversight Board (PCAOB), which is established by the Sarbanes-Oxley Act to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.

However, the American Institute of Certified Public Accountants (AICPA) is not a regulatory body with legal authority to demand working papers without client consent or a lawful subpoena.