Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

What is the status of third-party access to a CPA firm's audit working papers?

1. Working papers may be obtained by third parties if the client consents

2. Working papers are subject to the privileged communication rule

3. Working papers are transferable without the client's consent

4. Working papers are the client's exclusive property

The correct answer is: Working papers may be obtained by third parties if the client consents

Third-party access to a CPA firm's audit working papers is generally contingent upon the consent of the client. When a client agrees, third parties may obtain these working papers, reflecting the principle of client ownership and confidentiality in the professional relationship. This approach respects the client's rights while also providing necessary transparency and information sharing when the client deems it acceptable. The other options do not sufficiently address the nuanced framework of working paper access. For instance, the privileged communication rule does not typically apply to CPA working papers in the same way it does to attorney-client communications, as accounting practices do not have the same protections. The notion that working papers can be transferred without client consent ignores the professional ethics that govern the CPA profession, which emphasize the importance of client confidentiality and control over their own information. Additionally, while working papers contain valuable information related to the audit, they are not regarded as the exclusive property of the client; rather, the CPA firm maintains ownership of the working papers, albeit with restrictions on access without client consent.