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:

Mission and Domain Analysis

The process of both defining an organization's purpose, goals, and scope of operations, and identifying its strategic or competitive domain.

Business Portfolio Planning Analysis

A process of evaluating a company’s set of businesses, products, or investments to allocate resources strategically and maximize profitability.

Competitor Analysis

The process of evaluating the strengths and weaknesses of competing entities within the same market to strategize better positioning.

Corporate Culture Analysis

The examination of the values, behaviors, practices, and norms that define the environment of a business organization.