Ann McMillan is a CPA with a public accounting firm.A client of Ann's has called to tell her that the SEC is investigating the company for possible misrepresentations in the company's financial reports.Ann is worried that she may have pushed the envelope in allowing some of the revenues of the client to be reported as they were.Ann shreds several sets of notes from her meetings with the client on revenue recognition.Ann
A)is probably guilty of obstruction of justice.
B)has done nothing wrong because the notes are privileged communication the SEC is not entitled to have.
C)has not committed obstruction of justice because the SEC has not contacted her.
D)none of the above

Question

Quizplus · Accepted Answer

Ann's actions of shredding the notes relevant to the investigation indicate an attempt to destroy evidence, which could be seen as obstruction of justice. It does not matter if the SEC has contacted her or not, the act of destroying potential evidence is a criminal offense. The fact that the notes are privileged communication does not justify her actions.

Ann McMillan Is a CPA with a Public Accounting Firm