48 louie uditore cpa is an accountant with offices in

48. Louie Uditore, CPA, is an accountant with offices in California and New York. Louie learned that his client is
perpetrating a large-scale interstate fraud. The Federal Bureau of Investigation (FBI) contacts Louie about the crime.
What is true?
A. Louie may assert the Accountant-Client privilege and refuse to disclose information to the FBI
B. There is no federal Accountant-Client privilege.
C. Louie must get his client’s permission before talking to the FBI
D. Only if in New York may Louie assert the Accountant-Client privilege
ANSWER: ______
QUESTIONS 49 and 50:
One late afternoon Ruoxing Kuàijì, CPA, is directed by her firm’s Managing Partner to write a letter to a Bank assuring it
that their client Threadbare Industries is solvent. The letter must be sent by 5:00 pm. Unfamiliar with the client’s financial
condition and lacking the time to determine it, Ruoxing reluctantly drafts the letter and mails it to the Bank that same day.
49. What has the Managing Partner requested Ruoxing to write?
ANSWER: ______
50. What is the result if the Bank relies on Ruoxing’s letter, lends the client money, and the client goes bankrupt?
ANSWER: ______