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The accountant-client privilege prohibits the forced disclosure of certain confidential information between the accountant and the client. However, there are circumstances in which this protection is lost by either explicit or implied waiver of the privilege.
There is no such thing as accountant-client privilege; 11. Accounting documents will be subject to solicitor-client privilege only if the accountant was used as a representative of a client to obtain legal advice; 12.
INTRODUCTION. A law firm's delivery of an audit response letter confirming certain information about loss contingencies, such as pending or threatened litigation or claims (an ?audit response?), is a part of the process for the external audit of a client's finan- cial statements.
Does the attorney-client privilege apply to accountants? Yes, if the communication between accountant and client is made in confidence for the purpose of obtaining legal advice from the attorney.
The Restatement test makes accountants accountable to third parties, but only if the third party is an intended beneficiary of the accountant's work, and they knew or should have known that the third party would depend on the accountant's work product.
A Kovel agreement typically states that the workpapers created by the CPA firm belong to the attorney in order to maintain privilege.
An accountant will be held liable for negligence only to those with whom he or she had privity of contract, , meaning the client and anyone for whose primary benefit the accounting statements were prepared."
Revealing confidential information may mean losing their law license. Conversely, the accountant privilege is a minimal type of privilege that helps to protect some communications between an accountant and the client. The accountant privilege is limited and it does not apply in criminal cases.