Interpretations Under Rule 301
—Confidential Client Information
.04 301-3—Confidential
information and the
purchase, sale, or merger of a practice.
Rule 301 [ET
section 301.01]
prohibits a member in public practice from disclosing
any confidential client information without the specific consent of the client.
The rule provides that it shall not be construed to prohibit the review of
a member's professional practice under AICPA or state CPA society authorization.
For purposes of rule 301 [ET
section 301.01],
a review of a member's professional practice is hereby
authorized to include a review in conjunction with a prospective purchase,
sale, or merger of all or part of a member's practice. The member must take
appropriate precautions (for example, through a written confidentiality agreement)
so that the prospective purchaser does not disclose any information obtained
in the course of the review, since such information is deemed to be confidential
client information.
Members reviewing a practice in connection with a
prospective purchase or merger shall not use to their advantage nor disclose
any member's confidential client information that comes to their attention.
[Effective February 28, 1990.]
