In Which of the Following Circumstances Would a CPA Be

question 23

Multiple Choice

In which of the following circumstances would a CPA be ethically bound to refrain from disclosing any confidential client information?

• A) The CPA is issued a summons enforceable by a court order which orders the CPA to present confidential information.
• B) A major stockholder of a client company seeks accounting information from the CPA after management declined to disclose the requested information.
• C) The confidential client information is made available as part of a quality review of the CPA's practice by a peer review team authorized by the AICPA.
• D) An inquiry by a disciplinary body of a state CPA society requests confidential client information.

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Definitions:

Revaluation Method

An accounting practice involving the upward adjustment of an asset's value on the balance sheet to reflect current market values.

IFRS

An international financial reporting framework that sets out the principles for reporting financial information used around the world.

Capitalized Interest

Interest expenses that are included as part of the cost of constructing a long-term asset and thus included in the asset's valuation on the balance sheet.

Incremental Borrowing

Refers to the additional interest or costs a company incurs to obtain extra funds or increase its level of debt.