Question

Answer the following questions about confidential client communication.

a) Privilege is a common feature of the law; it extends to spouses, attorneys, doctors, and psychiatrists. What is the purpose of privilege?

b) What is the current rule on accountant/client privilege under federal law?

c) Alan, an attorney and a CPA, works as an accountant for the accounting firm of Tick and Tie. The SEC is investigating a client. Can Alan assert privilege and refuse to answer questions about the client? Explain why or why not.

Answer 1

Privilege is a common feature of the law; it extends to spouses, attorneys, doctors, and psychiatrists. What is the purpose of privilege?

Every person have confidential personal details that they wish not to be revealed in public. But in some cases like during a law suit the client may need to reveal everything to the attorney. The revelation they will make is due to the confidence In them. These personal information can be made advantage to black mail the client. To avoid such malpractices the privilege law came into existence , which made more reliable the system is.

What is the current rule on accountant/client privilege under federal law?

Rule 502. Lawyer-Client Privilege

(a) Definitions. As used in this rule:

        (1) A "client" is a person, public officer, or corporation, association, or other organization or entity, either public or private, who is rendered professional legal services by a lawyer, or who consults a lawyer with a view to obtaining professional legal services from him.

        (2) A "representative of a client" is one having authority to obtain professional legal services, or to act on advice rendered pursuant thereto, on behalf of the client.

        (3) A "lawyer" is a person authorized, or reasonably believed by the client to be authorized, to engage in the practice of law in any state or nation.

        (4) A "representative of the lawyer" is one employed by the lawyer to assist the lawyer in the rendition of professional legal services.

        (5) A communication is "confidential" if not intended to be disclosed to third persons other than those to whom disclosure is made in furtherance of the rendition of professional legal services to the client or those reasonably necessary for the transmission of the communication.

Alan, an attorney and a CPA, works as an accountant for the accounting firm of Tick and Tie. The SEC is investigating a client. Can Alan assert privilege and refuse to answer questions about the client?

YES. As per the us federal law they are subject to state ethics rules that generally prohibit disclosing client confidences, they come under the law client privilege and protection of client confidences.

Deliberate disclosure to a third party constitutes an express waiver of both the attorney-client privilege.