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:

Cognitive-behavioral

Relating to cognitive-behavioral therapy (CBT), a type of psychotherapy that involves modifying dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic approach.

Humanistic-existential

An approach in psychology that emphasizes individuality, free will, and the search for meaning in one’s existence.

Sociocultural

Pertaining to the combination of social and cultural factors that influence an individual or community.

Irrational Thinking

Thought processes characterized by unreasonable, flawed, or distorted perceptions of reality, often leading to negative emotional and behavioral outcomes.