Question

Which of the following statements is (are) correct regarding a CPA employee of a CPA firm taking copies of information contained in client files when the CPA leaves the firm?

1. A CPA leaving a firm may take copies of information contained in client files to assist another firm in serving that client.
2. A CPA leaving a firm may take copies of information contained in client files as a method of gaining technical expertise.

Answer 1

A CPA leaving a firm may take copies of information contained in client files to assist another firm in serving that client. However, taking copies of information for personal gain or to gain technical expertise is considered unethical. The correct option is 1.

Step-by-step explanation:

Regarding a CPA employee of a CPA firm taking copies of information contained in client files when the CPA leaves the firm:

1. A CPA leaving a firm may take copies of information contained in client files to assist another firm in serving that client. In this scenario, the CPA is transferring relevant information to ensure a smooth transition for the client and the new firm.
2. A CPA leaving a firm may not take copies of information contained in client files as a method of gaining technical expertise. This would be considered unethical and a violation of client confidentiality.

It is important for CPAs to adhere to strict ethical guidelines and principles, including maintaining client confidentiality and not using client information for personal gain.