Explain The Difference Between Privilege And The Accountant-Client Privilege
1) Explain the difference between the attorney-client privilege and the accountant-client privilege. Why is this important distinction? Why do you think that the law doesn’t provide the same level of privilege for accountants as it does for attorneys?
• The different between the attorney-client privilege and the accountant-client privilege is the communication. The attorney is protected by law, and the accountant is protected by state statute. They both are required to have the permission of the client for confidential information to be revealed. The accountant communication is not a privilege under the law than the attorney and his or her client (Miller, 2014, p.534). I think the law doesn’t provide the same privilege for accountants because
dealing with the professionals some of their clients or patients will not be comfortable enough to reveal personal information in front of the court.
2) In 2008, the SEC approved a plan to replace GAAP and GAAS with IFRS. Explain the general differences in these standards. Why do you think the SEC is not using IFRS. Do you think this is a good change or a bad change? Why?
• GAAS (General Accepted Auditing Standards) are concerning the standard an auditor’s professional qualities and judgment that he or she exercises in auditing financial records. This is when the American Institute of Certified Public Accountants established GAAP (General Accepted Accounting Principles). The SEC decided to replace the rule-based GAAP with the principles-based IFRS for several reasons. GAAP rules are very detailed and fill nearly 25,000 pages. The IFRS are very simpler, more straightforward, and short, which filling only 2,500 pages, and they focus more on general principles than on specific rules (Miller, 2014, p.520).
• The different between the attorney-client privilege and the accountant-client privilege is the communication. The attorney is protected by law, and the accountant is protected by state statute. They both are required to have the permission of the client for confidential information to be revealed. The accountant communication is not a privilege under the law than the attorney and his or her client (Miller, 2014, p.534). I think the law doesn’t provide the same privilege for accountants because
dealing with the professionals some of their clients or patients will not be comfortable enough to reveal personal information in front of the court.
2) In 2008, the SEC approved a plan to replace GAAP and GAAS with IFRS. Explain the general differences in these standards. Why do you think the SEC is not using IFRS. Do you think this is a good change or a bad change? Why?
• GAAS (General Accepted Auditing Standards) are concerning the standard an auditor’s professional qualities and judgment that he or she exercises in auditing financial records. This is when the American Institute of Certified Public Accountants established GAAP (General Accepted Accounting Principles). The SEC decided to replace the rule-based GAAP with the principles-based IFRS for several reasons. GAAP rules are very detailed and fill nearly 25,000 pages. The IFRS are very simpler, more straightforward, and short, which filling only 2,500 pages, and they focus more on general principles than on specific rules (Miller, 2014, p.520).