a. What is the purpose of the accountant client privilege?
b. Does the accountant client privilege mean that an accountant cannot disclose anything her client tells her?
c. To which of the questions in the case should the privilege extend?
A court in Nevada entered an award in favor of Mark and Janet Brandell for $435,066.82 against United Productions, Inc. (UP) and Harry R. Jones. When UP and Jones failed to pay the judgment, the court ordered both of them to appear and answer questions concerning their property. Neither obeyed the order. In an attempt to execute the judgment, the Brandells subpoenaed Sharon J. McNair, who had worked as an accountant for both UP and Jones for 15 years. McNair appeared but refused, on the grounds of accountant client privilege, to answer the following questions:
• In the course of your duties as an accountant for UP did you prepare tax returns?
• What type of work did you do for UP from the mid 1980s to the present?
• What type of accountant work did you do for Jones from 1980 to the present?
• Do you have any tax returns for UP?
• Have you prepared tax returns for UP from the mid-1980s to the present?
• Do you have in your possession tax returns for UP from the mid-1980s to the present?
• What is the most recent tax return you prepared for UP?
• What is the most recent tax return you have prepared for Jones?
• Do you handle the banking for UP?
• Do you handle the banking for Jones?
• What documents do you have in your possession regarding accounting records of UP?
• Have you ever prepared any accounts receivable for UP?
• Have you ever prepared any accounts receivable ledgers for UP?
• Have you ever prepared any accounts receivable ledgers for Jones?
• Do you have in your possession any documents reflecting the sale of any assets of UP?
• Within the last five years to your knowledge has UP sold any of its assets?
• Is UP still in existence to your knowledge?
• Is Jackie Do Los Reyes still a stockholder of UP?
• Who are the stockholders of UP?
• Have you ever prepared any financial statements for UP?
• Have you ever prepared any financial statements for Jones?
The district court held McNair in contempt, and she appealed.