Choice "C" is correct. Client working papers must be turned over pursuant to a valid federal court subpoena because generally there is no federal privilege in client working papers.
Choice "b" is incorrect. Working papers cannot be turned over to a successor purchasing the CPA's practice if the client objects. However, a prospective purchaser of the CPA's practice may review the workpapers if confidentiality is assured.
Choice "a" is incorrect. Client working papers belong to the accountant, not to the client. They need not be turned over to the client.
Choice "d" is incorrect. Unless subpoenaed, generally the working papers cannot be turned over to a government agency without the client's permission (there is an exception for requests from the Public Company Accounting Oversight Board with respect to working papers for clients that are publicly held).
