Dealing with Accountants - 27th Annual Corporate Counsel Institute - March 31, 2005

Sep 15, 2026

A corporate counsel institute program focused on how auditors and attorneys interact when addressing corporate fraud risk and audit-related reporting duties. The agenda covers pressure on auditors to detect corporate fraud, how misleading statements to auditors are treated, and enhanced attorney responsibilities under SOX, including SOX §307 reporting triggers, supervisory/subordinate duties, and sanctions. It also explains attorney-client privilege and work product doctrine in corporate contexts, waiver scope, and common exceptions. The program further includes attorney letters to auditors and related auditing standards.

LanguageEnglish

CategoryLetters

FormatPDF

Pages86

Reading Time30 min

AccessFree to download

Table of Contents

Pressure on Auditors to Detect Corporate Fraud

Misleading Statements to Auditors

Enhanced Attorney Responsibilities Under SOX

Attorney-Client Privilege and the Work Product Doctrine in the Corporate Context

Attorney Letters to Auditors

DEALING WITH ACCOUNTANTS By BYRON F. EGAN Jackson Walker L.L.P. 901 Main Street, Suite 6000 Dallas, Texas 75202-3797 JAMES D. GOLDSMITH Associate General Counsel KPMG LLP 757 Third Ave, 11 Floor New York, New York 10017 CHARLES R. LOTTER Former Executive Vice President, Secretary and General Counsel J.C. Penney Corp., Inc. 6501 Legacy Drive Plano, TX 75024 27TH ANNUAL CORPORATE COUNSEL INSTITUTE HOUSTON, TEXAS–MARCH 31, 2005 DALLAS, TEXAS–APRIL 21, 2005 SPONSORED BY THE UNIVERSITY OF TEXAS SCHOOL OF LAW AND THE CORPORATE COUNSEL SECTION OF THE STATE BAR OF TEXAS Copyright© 2005 by Byron F. Egan, James D. Goldsmith and Charles R. Lotter. All rights reserved. TABLE OF CONTENTS I. PRESSURE ON AUDITORS TO DETECT CORPORATE FRAUD................................3 GAAS...................................................................................................................................3 Section 10A..........................................................................................................................5 SEC Enforcement Actions ...................................................................................................7 PCAOB ................................................................................................................................8 II. MISLEADING STATEMENTS TO AUDITORS ............................................................10 III. ENHANCED ATTORNEY RESPONSIBILITIES UNDER SOX ...................................14 SOX §307........................................................................................................................... 14 Relationship to State Disciplinary Rules ...........................................................................15 Attorneys Covered ............................................................................................................. 15 Who is the Client?.............................................................................................................. 16 What Evidence Triggers Reporting Duty?.........................................................................16 Duty to Report Evidence of a Material Violation ..............................................................18 Alternative Reporting Procedures For An Issuer That Has Established A QLCC ............21 Issuer Confidences .............................................................................................................21 Responsibilities of Supervisory Attorneys.........................................................................22 Responsibilities of a Subordinate Attorney .......................................................................23 Sanctions and Discipline ....................................................................................................23 No SOX §307 Private Right of Action ..............................................................................23 No SOX §307 Private Right of Action ..............................................................................23 Enron Civil Liability Fallout..............................................................................................23 Attorney-Client/Work Product Privilege ...........................................................................25 Differences From Proposed Rules .....................................................................................25 IV. ATTORNEY-CLIENT PRIVILEGE AND THE WORK PRODUCT DOCTRINE IN THE CORPORATE CONTEXT .......................................................................................27 Introduction ........................................................................................................................27 Attorney-Client Privilege ...................................................................................................27 Overview .........................................................

FAQs

What SOX §307 attorney responsibilities are covered in this program?

The program addresses enhanced attorney responsibilities under SOX §307, including who is covered, what evidence triggers a reporting duty, and how duties apply to supervisory and subordinate attorneys.

How does the document handle attorney-client privilege and work product in corporate contexts?

It provides an overview of attorney-client privilege and the work product doctrine, including waiver principles, exceptions, and treatment of privileged versus generally unprivileged items during corporate matters.

What is included under “Attorney Letters to Auditors”?

The agenda includes specific discussion of attorney letters to auditors and references related auditing standards such as SFAS 5, SAS 12, and an ABA statement.

Sep 15, 2026

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