Author Question: The accounting firm of Gray & Co did accounting work for both Regional Bank and Carter ... (Read 173 times)

Metfan725 · **on:** Jun 24, 2018

The accounting firm of Gray & Co did accounting work for both Regional Bank and Carter Electronics. Without Carter's knowledge or approval, Gray & Co discussed Carter's financial problems with Regional Bank. In this situation, Gray & Co
A) breached a legal obligation to keep all client information confidential.
B) breached a moral, but not a legal, obligation of confidentiality.
C) did not breach any obligations to its clients.
D) acted properly because it was protecting its client, Regional Bank, from possibly making an unwise loan to Carter Electronics.

Question 2

In which of the following cases will the federal accountant-client privilege protect the information from being disclosed?
A) A criminal case
B) A case involving the SEC
C) A case concerning the preparation of tax returns
D) A civil case involving the IRS