Page, CPA, has T Corp. and W Corp. as audit clients. T Corp. is a significant supplier of raw materials to W Corp. Page also prepares individual tax returns for Time, the owner of T Corp., and West, the owner of W Corp. When preparing West’s return, Page finds information that raises going-concern issues with respect to W Corp. May Page disclose this information to Time?
No, because the information is confidential and may not be disclosed without West’s consent.
Conduct Rule 301 states that a member in public practice cannot disclose confidential client information without the client’s consent. The only exceptions are (1) in response to an enforceable subpoena; (2) a review of the CPA’s professional practice; (3) a discharge of professional obligations; and (4) a response to an inquiry made by the professional ethics division, trial board of the AICPA, or an investigative or disciplinary body of a state society or board of accountancy.