How to respond to subpoenas

CPA firms are often uncertain about whether or how to respond to a subpoena, as they also need to comply with a number of rules and regulations that are intended to protect client confidentiality. The following Q&A focuses on understanding the nature of subpoenas and how CPA firms can minimize their professional liability exposures when responding to them.

What is a subpoena?

The New 'Hosting Services' Interpretation

Under the new "Hosting Services" ethics interpretation in the AICPA's Code of Professional Conduct (ET §1.295.143), effective July 1, 2019, CPA independence is impaired by taking responsibility for hosting a client's data or records. As such, if the only way that the client can access its complete records is through the CPA firm, the CPA firm's independence is deemed impaired.

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Latest Articles

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  • 27 Jul

    Exclusive Policyholder Benefits

    Risk management services and resources to help you with today's practice challenges

    CAMICO knows that insurance alone is not a solution for reducing risks. That's why you have access to CAMICO’s proven approaches that have helped numerous CPA firms manage risk and avoid claims.... read more

  • 27 Jul

    War Story 117 - Ransomware Attack

    A staff member of a mid-size CPA firm logged into a public wi-fi network at a coffee shop and spent the morning working on firm files while on the public network. A few days later the employee received an email message from a hacker stating that a ransomware attack had encrypted all of the... read more