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.

---

Definitions:

Nervous System

The complex network of nerves and cells that transmit signals between different parts of the body, coordinating actions and sensory information.

Attachment

An emotional bond that forms between individuals, typically between a child and caregiver, influencing personal development and emotional connections in adulthood.

Ambivalent

Mixed feelings or contradictory attitudes towards something or someone.

Avoidant

Relating to or indicative of a personality trait or behavior characterized by a tendency to withdraw from or avoid emotional intimacy.