A Client Wants to Discuss with Its CPA Some of the Valuation

question 18

Multiple Choice

A client wants to discuss with its CPA some of the valuation and accounting issues associated with maintaining a proprietary business process as a trade secret rather than obtaining a patent for it.Patents are granted by the United States Patent Office.As a result:

• A) The federal accountant-client privilege applies to protect these discussions from being revealed to the general public
• B) The duty of confidentiality, as articulated in the Code of Professional Conduct, applies to these discussions
• C) The federal accountant-client privilege does not fully apply because discussions of non-accounting issues, such as the preservation of a patent, are exempted from the scope of this privilege
• D) Both the duty of confidentiality and the federal accountant-client privilege govern this situation

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Definitions:

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service.

Purchasing Power

The real value of money, reflecting how much goods or services one unit of money can buy.

Period

A length or portion of time, often defined for specific calculations or measurements.

Ratio

A quantitative relationship between two numbers showing how many times one value contains or is contained within the other.