Which of the Following Statements About the Statements on Standards

question 83

Multiple Choice

Which of the following statements about the Statements on Standards for Tax Services is true?

• A)A CPA is never allowed to use a taxpayer's estimates when preparing a tax return.
• B)The CPA must tell the IRS upon becoming aware that an error has been made on a past tax return.
• C)The CPA may in good faith rely on information provided by the taxpayer, without verifying the reliability of that information if reasonable inquiries are made where the information furnished appears to be incorrect.
• D)The CPA should not recommend that a taxpayer take a certain position if there is any doubt as to whether the position would be approved by the IRS upon audit.

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Definitions:

Seed-eating Bird

Birds that primarily feed on seeds; this feeding behavior influences their habitat preferences, migration patterns, and physical adaptations like beak shape.

Solitarily

Pertains to behaviors or lifestyles where an organism lives alone, or functions independently, often for reasons related to survival or reproduction.

Game Theory

A mathematical framework for analyzing situations in which parties make decisions that are interdependent, often used to predict outcomes in strategic interactions.

Seed-eating Bird

Birds that primarily feed on seeds; their beak shapes often adapt to their specific type of seed diet, demonstrating natural selection.