1-401. Certified public accountants; ownership of working papers; client communications, privileged, exception; availability of documents and information for peer reviews and board investigations.
1-401
1-401. Certified public accountants; ownership of working papers; client
communications, privileged, exception; availability of documents and information
for peer reviews and board investigations.
(a) Except as otherwise provided in this section, all statements, records,
schedules and memoranda, commonly known as working papers, made by a certified
public accountant, or by any employee of a certified public accountant,
incident to, or in the course of professional service to clients by such
certified public accountant, except reports delivered to a client by such
certified public accountant, shall be and remain the property of such certified
public accountant in the absence of a written agreement
between the certified public accountant and the client to the contrary.
(b) No certified public accountant shall be examined through judicial
process or proceedings without the consent of the client as to any
communication
made by the client to the certified public accountant in person or through
the media of books of account and financial records, or as to advice, reports
or working papers given or made thereon in the course of professional
employment,
nor shall a secretary, stenographer, clerk or assistant of a certified public
accountant be examined without the consent of the client concerned, concerning
any fact the knowledge of which any such person has acquired in such capacity
or relationship with the certified public accountant. Nothing in this section
shall be construed as limiting the authority of this state or of the United
States or any agency of this state or of the United States to subpoena books of
account, financial records, reports or working papers or other documents and
use such information in connection with any investigation, public hearing or
court proceeding. This privilege shall
not exist when any such communication is material
to the
defense of an action against a certified public accountant and as otherwise
provided by this section.
(c) Nothing in subsection (a) shall prohibit a certified public accountant,
or any employee of a certified public accountant, from disclosing any data
to any other certified public accountant, or anyone employed by a certified
public accountant in connection with peer reviews of such certified public
accountant's accounting and auditing practice. Nothing in subsection (a)
shall prohibit the board of accountancy from securing working papers in
connection with any investigation authorized under law. Nothing in subsection
(b) shall prohibit a certified public accountant or anyone employed by a
certified public accountant from disclosing any data to any other certified
public accountant or anyone employed by a certified public accountant in
connection with peer reviews of such certified public accountant's accounting
and auditing practice nor shall such disclosure waive the privilege. Persons
conducting such peer reviews shall be subject to the same duty of
confidentiality
in regard to such data as is applicable to certified public accountants
under this section.
(d) As used in this section, "certified public accountant" means a person
who holds a permit from the board of accountancy to engage in practice as
a certified public accountant in this state.
History: L. 1981, ch. 1, § 1;
L. 1992, ch. 241, § 1; May 21.