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November 2011 » The Accountant as Whistleblower
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Craig P. Ehrlich, JD, and Joanne D. Williams, PhD, MBA, CPA
Under the new rules of the Dodd-Frank Wall Street Reform and Consumer Protection Act, an accountant may receive a “bounty” for reporting to the SEC a client who is engaging in conduct that is likely to cause substantial injury to the financial interests or property of the client or its investors. Does this mean that accountants are now supposed to blow the whistle on their clients? When is an accountant under a duty to disclose a fraud or other wrongdoing by a client, even if that means breaching client confidence, and when is disclosure permitted without liability for breaching client confidence?
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