1-401.   Certified public accountants; ownership of working papers; clientcommunications, privileged, exception; availability of documents and informationfor 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 certifiedpublic accountant, or by any employee of a certified public accountant,incident to, or in the course of professional service to clients by suchcertified public accountant, except reports delivered to a client by suchcertified public accountant, shall be and remain the property of such certifiedpublic accountant in the absence of a written agreementbetween the certified public accountant and the client to the contrary.

      (b)   No certified public accountant shall be examined through judicialprocess or proceedings without the consent of the client as to anycommunicationmade by the client to the certified public accountant in person or throughthe media of books of account and financial records, or as to advice, reportsor working papers given or made thereon in the course of professionalemployment,nor shall a secretary, stenographer, clerk or assistant of a certified publicaccountant be examined without the consent of the client concerned, concerningany fact the knowledge of which any such person has acquired in such capacityor relationship with the certified public accountant. Nothing in this sectionshall be construed as limiting the authority of this state or of the UnitedStates or any agency of this state or of the United States to subpoena books ofaccount, financial records, reports or working papers or other documents anduse such information in connection with any investigation, public hearing orcourt proceeding. This privilege shallnot exist when any such communication is materialto thedefense of an action against a certified public accountant and as otherwiseprovided 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 datato any other certified public accountant, or anyone employed by a certifiedpublic accountant in connection with peer reviews of such certified publicaccountant's accounting and auditing practice. Nothing in subsection (a)shall prohibit the board of accountancy from securing working papers inconnection with any investigation authorized under law. Nothing in subsection(b) shall prohibit a certified public accountant or anyone employed by acertified public accountant from disclosing any data to any other certifiedpublic accountant or anyone employed by a certified public accountant inconnection with peer reviews of such certified public accountant's accountingand auditing practice nor shall such disclosure waive the privilege. Personsconducting such peer reviews shall be subject to the same duty ofconfidentialityin regard to such data as is applicable to certified public accountantsunder this section.

      (d)   As used in this section, "certified public accountant" means a personwho holds a permit from the board of accountancy to engage in practice asa certified public accountant in this state.

      History:   L. 1981, ch. 1, § 1;L. 1992, ch. 241, § 1; May 21.