CASE 4.7
DAVID QUINN, TAX ACCOUNTANT
Synopsis
Debbie Woodruff and David Quinn met in a section of introductory financial accounting at the
large public university they each attended. Although the two accounting majors had very different,
if not conflicting, personalities, they established a tenuous friendship and became study partners
throughout college. The shy but hard-working Debbie breezed through her college career with a 3.9
accounting GPA, while the brash and outgoing David managed to post a 3.2 GPA in his accounting
courses, thanks largely to extensive tutoring by Debbie. When they graduated, Debbie accepted an
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David Quinn, Tax Accountant—Key Facts
Case 4.7 David Quinn, Tax Accountant 211
2. Debbie was somewhat shy, while David was brash and outgoing; nevertheless, the two
accounting majors became friends and study partners during their college careers.
4. Debbie served on the office’s audit staff, while David joined the office’s tax staff.
6. During the course of this lunch, David discussed confidential information regarding one of his
clients with the other tax professionals.
7. When Debbie told David that he should not discuss such matters over lunch, an angry
confrontation ensued between the two friends.
Instructional Objectives
212 Case 4.7 David Quinn, Tax Accountant
1. To demonstrate the importance of maintaining the confidentiality of important client
information.
Suggestions for Use
Maintaining the confidentiality of client information is a critically important responsibility of
every profession, including public accounting. This brief case documents that even lower-level
accounting professionals need to be aware of the obligations the client confidentiality rule imposes
Suggested Solutions to Case Questions
1. Rule 301 of the AICPA Code of Professional Conduct states that “A member in public practice
shall not disclose any confidential client information without the specific consent of the client.”
However, the code does not expressly define what constitutes “confidential client information.”
2. Of course, students will have differing opinions on how Debbie should have dealt with this
matter. In my view, she handled the problematic situation very well. She immediately recognized
that a colleague of hers was engaging in unprofessional behavior by discussing confidential client
information. Next, she attempted to delicately divert his attention to a different subject. When that
tactic failed, she “took the bull by the horns” and simply told David that his behavior was
inappropriate. What more could she have done?
Case 4.7 David Quinn, Tax Accountant 213
3. Debbie could easily have justified reporting David’s conduct to a superior. In fact, one could
argue that a strict interpretation or application of the profession’s ethical standards dictated that
Debbie report David’s imprudent conduct. In reality, Debbie did not report David’s conduct, which,
I would suggest, is what most individuals would do under similar circumstances. Note: As a point
of information, one of my insightful students suggested that, quite possibly, the embarrassing