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:

Ambiguous Situations

Circumstances or scenarios that lack clarity or have multiple interpretations.

Rationalizations

The process of providing reasonable explanations for behaviors, decisions, or business practices that may otherwise appear irrational or unjustified, often to align with societal norms or ethical standards.

Unethical Behaviour

Actions or practices by individuals or organizations that violate moral principles or accepted standards of conduct.

Social Morality

Collective ideas about what is considered right and wrong behavior in society, shaped by cultural, religious, and personal beliefs.