§506 Accountant-client Privilege

• Library: Evidence Restated Deskbook (2021 Ed.)

§506 Accountant-Client Privilege

A. General rule of privilege. Unless waived by the client or the client's heirs, successors, or personal representatives, an accountant is barred from voluntarily disclosing information communicated to the accountant by the client relating to and in conjunction with services rendered to the client by the accountant.

B. Exceptions. An accountant may disclose the information if the information is:

1. material to the defense of an action against an accountant;

2. required to be disclosed by the standards of the public accounting profession in reporting on the examination of financial statements; or

3. provided:

a. in ethical investigations conducted by private professional organizations;

b. in the course of peer reviews; or

c. to other persons active in the organization performing services for that client on a need-to-know basis or to other persons in the entity who need this information for the sole purpose of assuring quality control.

Notes

A. General rule of privilege

"No accountant-client privilege existed at common law." State ex rel. Sw. Bell Publ'ns v. Ryan, 754 S.W.2d 30, 31 (Mo. App. E.D. 1988). Missouri enacted the privilege in 1967.

Section 326.322, RSMo 2016, contains the privilege:

Disclosure of client information by licensee ["licensee" refers to a certified public accountant or a public accountant within the meaning of Chapter 326, RSMo]

1. Except by permission of the client for whom a licensee performs services or the heirs, successors or personal representatives of such client, a licensee pursuant to this chapter shall not voluntarily disclose information communicated to the licensee by the client relating to and in connection with services rendered to the client by the licensee. The information shall be privileged and confidential, provided, however, that nothing herein shall be construed as prohibiting the disclosure of information required to be disclosed by the standards of the public accounting profession in reporting on the examination of financial statements or as prohibiting disclosures in investigations, in ethical investigations conducted by private professional organizations, or in the course of peer reviews, or to other persons active in the organization performing services for that client on a need-to-know basis or to persons in the entity who need this information for the sole purpose of assuring quality control.

2. A licensee shall not be examined by judicial

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