Question

In which situations may you disclose confidential client information without violating the AICPA Code of Professional Conduct?

1. In response to a validly issued and enforceable subpoena.
2. At the request of another client that needs the information to file its tax return.
3. As an example in a seminar given for CPE credit.
4. In a proposal to a potential client.

Terry Industries engages Rose & Co., CPAs, to prepare its annual financial statements and tax returns. Before either of these engagements is completed, Terry terminates the relationship and asks the firm to provide all records that they provided to the firm, the firm's working papers, and its partially completed work product. Terry has not paid Rose & Co. for either service. Under the AIPCA rule on client records requests, which records, if any, may Rose & Co. withhold from the client?

1. Records Terry provided Rose & Co.
2. Rose's working papers and its partially completed work product.
3. Any records the firm chooses to withhold.
4. No records may be withheld from the client.

Answer 1

1. In response to a validly issued and enforceable subpoena.

2. Rose's working papers and its partially completed work product.