What is the accountant-client privilege?

What will be an ideal response?

Sometimes clients of accountants are sued in court. About 20 states have enacted statutes that create an accountant-client privilege. In these states, an accountant cannot be called as a witness against a client in a court action. The majority of the states follow the common law, which provides that an accountant may be called at court to testify against his or her client. The U.S. Supreme Court has held that there is no accountant-client privilege under federal law. Thus, an accountant could be called as a witness in cases involving federal securities laws, federal mail or wire fraud, federal Racketeer Influenced and Corrupt Organizations Act (RICO), or other federal criminal statutes.