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

question 60

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