Final answer:
The statement is true according to the AICPA Code of Professional Conduct. CPAs must maintain client confidentiality unless legally required to disclose information, including illegal acts.
Step-by-step explanation:
The statement is True: Under Code 1 of the AICPA Code of Professional Conduct, CPAs are obliged to maintain confidentiality of client information. The confidential rule restricts CPAs from disclosing such information without proper authority or unless there is a specific, legal requirement to do so. This could include court orders, subpoenas, or as part of a quality review of a CPA's practice.
However, if a CPA becomes aware of illegal acts, they might have a duty under certain circumstances to make a disclosure, even without the client's consent. It's crucial for CPAs to be aware of both their ethical obligations for confidentiality and their legal obligations to disclose information when required by law. This dual awareness is foundational to the ethical practice of accounting professionals.