Alabama Private Investigator Practice Exam

What is a condition under which accountancy professionals are exempt from the LPI license requirement?

1. When they are certified public accountants

2. When employed by an attorney

3. When they provide investigative services independently

4. When they perform audits for clients

The correct answer is: When they are certified public accountants

Accountancy professionals are exempt from the LPI license requirement when they are certified public accountants (CPAs). This exemption is based on the understanding that CPAs possess specialized training and qualifications in financial matters, which allows them to conduct certain investigative functions as part of their professional responsibilities without needing an additional private investigator license. This encompasses tasks such as fraud detection and financial analysis that are inherent to their role. The other options do not reflect the specific conditions under which accountancy professionals are exempt from the licensing requirement. For instance, being employed by an attorney or performing audits may involve investigative elements, but these alone do not confer the same level of exemption that being a certified public accountant does, as they are not recognized certifications that inherently grant investigative authority in the same way.