During the Course of an Audit, a CPA Discovers an Error

question 38

Multiple Choice

During the course of an audit, a CPA discovers an error in a prior return. According to the Statements on Standards for Tax Services, the CPA should

• A)ask the client for permission to disclose the error to the IRS.
• B)withdraw from the engagement.
• C)inform the IRS of the error, regardless of whether the client grants permission.
• D)correct the error in the current year's tax return.

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Definitions:

Modern Scientific Evidence

Contemporary data or information obtained through scientific methods used to support or refute hypotheses, theories, or claims.

Cluster C

A category within the Diagnostic and Statistical Manual of Mental Disorders (DSM) that includes anxiety, avoidant, and dependent personality disorders.

Dependent

Relying on someone or something else for support, sustenance, or care, often leading to a lack of autonomy.

Big Five Traits

A model outlining five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.