In connection with a lawsuit, a third party attempts to gain access to the auditor's working papers. The client's defense of privileged communication will be successful only to the extent it is protected by the

Question

Quizplus · Accepted Answer

The privilege of confidential communication between a client and an auditor is a matter of state law. Therefore, the client's defense of privileged communication will be successful only to the extent it is protected by the state law. The common law and AICPA Code of Professional Conduct do not provide legal protection for privileged communication. The auditor's acquiescence in the use of this defense is not relevant to the legality of the privilege.

In Connection with a Lawsuit, a Third Party Attempts to Gain