Which of the Following Communications Between an Accountant and Client

question 85

Essay

Which of the following communications between an accountant and client are not privileged?
a) An accountant orally communicates to his client that he should set up a foreign subsidiary to shift taxable in a lower tax jurisdiction.
b) An accountant privately submits to the client a plan for shifting taxable income to a lower tax jurisdiction.
c) During a meeting in which a client is asking for advice relating to criminal fraud, the client tells his accounta he lied to the IRS.

---

Definitions:

Unutilized Assets

Resources or assets owned by a company that are not being used to their full potential, often resulting in inefficiency and lost revenue.

Overbooking

The practice of selling or booking more of a service than what is actually available, under the assumption that there will be cancellations or no-shows.

Lost Revenue

Revenue that was not earned due to missed opportunities, such as not having enough inventory to meet demand.

Differential Pricing

The strategy of selling the same product to different customers at different prices based on market factors, demand, and customer’s willingness to pay.