Information acquired from a client and which is not accessible by third parties is known to confidential according to the American Institute of Certified Public Accountants (AICPA). Any other information that can be found in the public domain like publications and websites is excluded from this category. Recently, the AICPA reviewed their Code of Professional Conduct to include the Confidential Client Information Rule. The rule gives direction and regulation on how to handle client information and maintain its confidentiality (AICPA, 2014). Since the new rule took effect in December 2014, Certified Public Accountant (CPA) tax practitioners have been encouraged to ensure that they adhere to both the old and new set of rules. AICPA states clearly that a practicing certified public accountant cannot disclose any client information that is confidential without the approval of the member.
Mr. Jones violated the client’s confidentiality as the client information can be disclosed to third party only when the law requires so or is permitted by the client. Any information that is confidential having been attained through specialized or occupational relations cannot be used for the individual gain of any certified accountant. (Melé, 2005). A professional who discloses such confidential information shall be guilty of misdemeanor and should be convicted. Mr. Jones decided not to act in good faith and without the consent of the client and is therefore liable to the violation of the clients’ confidentiality. Mr. Jones engagements result in him being indicted with a felonious offence that will involve a one-year imprisonment or a fine not exceeding $1000, or both, depending on the officer giving the judgment, plus the cost of prosecution as per the Internal Revenue Service (IRS) declarations.
Delegate your assignment to our experts and they will do the rest.
References
AICPA. (2014) Client’s confidentiality rule: Code of professional conduct. U.S.A: AICPA, Inc.
Melé, D. (2005). Ethical education in accounting: Integrating rules, values and virtues. Journal of Business Ethics , 57 (1), 97-109.
