D is corrent because in a jurisdiction having an accountant-client privilege statute, the CPA generally may not turn over workpapers without the client’s permission. It is allowable to do so, however, for use in a quality review under AICPA authorization or to be given to the state CPA society quality control panel.
A is incorrect because the client would have to give permission for the CPA to turn over the confidential workpapers to the purchaser of the CPA practice.
B is incorrect because CPAs should not turn over a client’s workpapers to tax authorities in absence of the client’s permission.
C is incorrect because a CPA need not turn over workpapers to a court without an enforceable subpoena.
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