What is Confidential Client Information?

Confidential client information is any client information that is not available to the public. Confidential information may include technology, trade secrets, information pertaining to business operations and strategies, and information pertaining to customers, pricing and marketing. Another way to define confidential information is anything that might harm a client if it were disclosed.

The AICPA Code of Professional Conduct outlines a number of scenarios involving confidential client information, stating how the accountant should treat this information.

How to Protect Confidential Client Information

Accountants routinely accept confidential files from their clients. If sent electronically, these files should be routed through a secure file-sharing platform. In addition, the files should be encrypted, so that they are unreadable by anyone other than the intended party. These steps are needed to ensure that confidential client information stays that way.