What is the correct statement on disclosing confidential client information by a CPA?

The correct statement regarding the disclosure of confidential client information by a CPA is that such disclosures should only be made with client consent. This principle upholds the ethical standard of confidentiality that CPAs are bound to follow. Client information is considered sensitive, and practitioners have a duty to protect this information from unauthorized disclosure.

The importance of obtaining client consent stems from the trust placed by clients in their CPAs. This relationship relies heavily on confidentiality, which is a cornerstone of professional ethics in accounting. By requiring client consent before disclosing any information, CPAs ensure the integrity of their professional relationship and comply with industry standards and regulations.

In situations where legal obligations arise, such as when a subpoena is issued or other legal circumstances dictate, the CPA may be required to disclose information. However, this is contingent on specific legal requirements rather than a blanket permission to disclose information without consent.