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.

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Definitions:

Title Bar

A horizontal bar at the top of a window in a graphical user interface, displaying the name of the application or document.

Microsoft Word Window

The interface of the Microsoft Word application where users can create, view, and edit documents.

Folder

A virtual container in a computer's file system used to organize files, other folders, and shortcuts, making it easier to manage data.

Storage Medium

A storage medium is a physical material or device that is used to store digital data, such as a hard drive, SSD, CD, or memory card.