EPA challenges privilege issue in environmental self-audits

To encourage more companies to conduct environmental audits voluntarily, many states have enacted evidentiary privilege to protect information obtained during these engagements. CPAs need to be aware of the limitations of this privilege. Many of the environmental laws require that companies discovering violations of environmental regulations report them to the Environmental Protection Agency. Also, many states are authorized by the EPA to administer the various Federal programs established under environmental statutes. Several states have attempted to encourage self-audits by enacting evidentiary privilege to protect information obtained during audits.