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

question 1722

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

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Definitions:

Conditioning

A process of behavior modification by which a subject comes to respond in a desired manner to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus that elicits the desired response.

Species-Specific Defense

Innate or evolved behaviors that are characteristic of a particular species and are used to defend against predators or threats.

Reactions

Responses or behavior of an organism resulting from external or internal stimuli.

Major Neurotransmitter

A primary chemical messenger that transmits signals across neurons in the brain and body.