Question

Discuss accountant-client privilege.

Answer 1

Answer is as under :

Meaning : Accountant - client privilege means a protection given to the client from an accountant that he will not disclosure the data , documents and material given to him by client or prepared by the accountant on the basis of client data. In simple terms it means protection given to client with reference to confidential data given by client to accountant and non disclosure of same to the third party. It gives a sense of freedom and trust to client while given data and information to accountant without any fear of disclosure of sensitive confidential data to outside party. Also it helps the accountant and professionals to perform there duty in a better way.

A client have authority to waive the Accountant client privilege but the same is not the case with the accountant because the main reason behind the privilege is to protect the client.

Two types of accountant client privileges are :

1) Evidentiary privileges : An evidentiary privilege is one that may as a general rule be successfully asserted in a court of law

2) Non-evidentiary privileges : A non-evidentiary privilege is one that may not be maintained in a court of law or which is, according to the terms of the statute granting the privilege, not applicable in the face of an order from the court compelling disclosure of the communication for which the privilege is claimed.