What is the accountant-client privilege?
What will be an ideal response?
Sometimes clients of accountants are sued in court. About 20 states have enacted statutes that create an accountant-client privilege. In these states, an accountant cannot be called as a witness against a client in a court action. The majority of the states follow the common law, which provides that an accountant may be called at court to testify against his or her client. The U.S. Supreme Court has held that there is no accountant-client privilege under federal law. Thus, an accountant could be called as a witness in cases involving federal securities laws, federal mail or wire fraud, federal Racketeer Influenced and Corrupt Organizations Act (RICO), or other federal criminal statutes.
You might also like to view...
Energy Corporation, a U.S. diversified power management company, reported a balance in Retained Earnings of $2,800 million at the beginning of 2013 and $3,300 million at the end of 2013 . Based on Energy Corporation's financial reports for fiscal 2013, it reported dividends declared and paid of $250 million for 2013 . Compute the amount of net income for 2013 . (Energy Corporation applies U.S
GAAP, and reports its results in millions of U.S. dollars.) a. -$250 million b. $250 million c. $550 million d. $750 million e. none of the above
The Federal Emergency Management Agency (FEMA) discovers that Goodnuff Trailers, Inc, is violating a FEMA regulation. If this situation is resolved like most such disputes, the outcome will be? A) a negotiated settlement
B) a trial and a fine. C) a trial and an appeal to a higher authority. D) a trial and the dissolution of the business.
The entry to record a return of merchandise purchased on credit includes a debit to the ________ account in the general ledger.
Fill in the blank(s) with the appropriate word(s).
The traditional primary use of the Fifth Amendment's just compensation (takings) clause is to require the government to pay:
a. for all business records that must be produced for examination b. for causing mental distress in legal proceedings c. for all reductions in private property value caused by regulations d. wages to government workers similar to private sector wages e. none of the other choices