In connection with a lawsuit, a third party attempts to gain access to the auditor's working papers. The client's defense of privileged communication will be successful only to the extent it is protected by the:
A)auditor's acquiescence in use of this defense.
B)common law.
C)AICPA Code of Professional Conduct.
D)state law.

Question

Quizplus · Accepted Answer

The protection of privileged communication between a client and auditor is governed by state law. The AICPA Code of Professional Conduct and common law may offer some guidance, but ultimately the extent of the protection is determined by state law. Therefore, the client's defense of privileged communication will be successful only to the extent it is protected by state law.

In Connection with a Lawsuit, a Third Party Attempts to Gain