Final answer:
The AICPA Confidential Client Information Rule contains exceptions for disclosing information, mainly based on legal and regulatory requirements, but does not permit arbitrary disclosure to entities such as the SEC or FTC without specific conditions being met.
Step-by-step explanation:
The Confidential Client Information Rule as interpreted by the AICPA does not explicitly allow a CPA to divulge confidential client information to the SEC, U.S. Department of Justice, AICPA Professional Ethics Division, or the Federal Trade Commission as a matter of course; instead, there are nine exemptions where certain conditions may permit or require disclosure without client consent. These exemptions relate to matters of national security, compliance with law, and other specific circumstances where disclosure is either permitted or mandated by laws or regulations, such as court orders, inquiries from professional ethics divisions, and in response to a subpoena. However, these conditions are generally more related to legal and regulatory requirements, rather than an arbitrary allowance to share such information with the specified entities.