Premium Essay

Why Your Cpa Might Blac

In: Business and Management

Submitted By April12220
Words 254
Pages 2
07/31/2011
Wall Street Journal 5

Why Your CPA Might Blab
This article addresses the issue of the CPA’s reliability. The Internal Revenue Service (IRS) more often is challenging the lawyer-client right to confidentiality, and there is a rule called Kovel Rule has been providing the principle for tax lawyers to follow for over 50 years. However, there are some opposite points of views claim that accountants who are working with a lawyer for a client are not necessarily covered. The reason why they are doubted the confidentiality of the communication is because the Kovel Rule is only applied by some states to protect certain accountant-client communications, but not applied by the federal government. Therefore, it is important for the lawyers to make sure that they have spelled out how the accountant will assist them and then separated all related documents in order to ensure their conversations are considered confidential. Moreover, it is the best way to do so everything is clear when the law firms hire an accountant that accounting working isn’t protected under Kovel. In conclusion, even though taxpayers are worried about confidentiality under the Kovel Rule, the lawyers and accountants are even more concerned about it. However, if everyone thinks through carefully what they are doing and if it is protected, there would not be that bad.

Reference
Dale, Arden. “Why Your CPA Might Blab.” The Wall Street Journal. June 18, 2011. July 30, 2011. Web Source.

Similar Documents

Premium Essay

Shift Happens

...------------------------------------------------- EXPLORING THE PRINCIPLES FOR INCREASING INTEGRITY, OBJECTIVITY IN EXTERNAL AUDITS. Authors: Dosch, Robert J. rdosch@business.und.edu Haskins, James P. jhaskins@business.und.edu O'Keefe, Timothy P. tim.okeefe@business.und.edu Source: Information Management Journal. May/Jun2013, Vol. 47 Issue 3, p32-36. 5p. Document Type: Article Subject Terms: *RECORDS management *FINANCIAL statements *AUDITING *DATA integrity *AUDITING standards *BUSINESS records -- Management *OFFICE management *ELECTRONIC data processing Geographic Terms: UNITED States NAICS/Industry Codes: 518210 Data Processing, Hosting, and Related Services 561110 Office Administrative Services 561490 Other business support services Abstract: The article discusses how integrating the records and information management (RIM) process and Generally Accepted Recordkeeping Principles in the financial statement audit process will improve audit objectivity and integrity. It states that RIM professionals have an important role in the audit process as the objectivity and integrity of information are crucial to the quality of audit outcomes. It explores the framework of an external audit in the U.S. which are done in compliance with the General Accepted Auditing Standards. ISSN: 1535-2897 Accession Number: 89184390 ------------------------------------------------- EXPLORING his article proposes that incorporating the records and information management...

Words: 10808 - Pages: 44