Which of the following is a correct statement about the circumstances under which a CPA firm may or may not disclose the names of its clients without the clients' express permission?
A. A CPA firm may disclose this information unless disclosure would suggest that the client may be experiencing financial difficulties.
B. A CPA firm may not disclose this information because the identity of its clients is confidential information.
C. A CPA firm may disclose this information if the practice is limited to performing asset valuations in anticipation of mergers and acquisitions. D. A CPA firm may disclose this information if the practice is limited to bankruptcy matters, so that prospective clients with similar concerns will be able to contact current clients.
Answer:A
Choice "A" is correct. An ethics ruling related to Rule 301 states that it is permissible for a member to disclose the name of a client without the client's consent unless the disclosure of the client's name results in the release of confidential information. The specific example given in the ethics ruling states that if a member's practice is limited to bankruptcy matters, the disclosure of a client's name suggests that the client may be experiencing financial difficulties, which could be confidential client information. Confidential client information cannot be disclosed without the client's consent.