[Prenuptial Agreement] Norah performed accounting services for Joel's used car business. She had a contract with Joel to the effect that she would audit his books and financial statements for his own use, not for the purpose of obtaining loans. In auditing Joel's business, she developed various notes, calculations, memorandums, and other papers. Gloria, Joel's fiancé, approached Norah to inquire about Joel's business. Gloria and Norah had been friends for many years. Norah allowed Gloria to look at the various notes, calculations, and other papers resulting from her review of Joel's financial statements and other records. Gloria told Norah that she really needed to investigate Joel because they were thinking of getting married, and she believed he had a legal obligation to disclose the information to her because of negotiations involving a prenuptial agreement. Norah agreed and proceeded to discuss Joel's finances with Gloria, revealing all the information that Joel had disclosed to her. Gloria broke up with Joel, telling him that after what she discovered from Norah, she was concerned about Joel's finances. Joel was very angry with Norah and told her that she was unethical and had violated the accountant-client privilege.
-Regarding Joel's assertion that Norah violated the accountant-client privilege, which statement is accurate?
A) Joel was correct since the accountant-client privilege exists in all states through common law.
B) Joel was incorrect because there is no accountant-client privilege in any state.
C) Joel was correct because the accountant-client privilege is recognized by federal law.
D) Joel was correct because the accountant-client privilege is recognized in all states through statutory law.
E) More information is needed in order to know if Joel is correct because the accountant-client privilege is recognized in some states, but not in all states.
Correct Answer:
Verified
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