Which of the Following Statements About the Statements on Standards

question 2

Multiple Choice

Which of the following statements about the Statements on Standards for Tax Services is true?

• A) The CPA may in good faith rely on information provided by the taxpayer, without verifying the reliability of that information if reasonable inquiries are made where the information furnished appears to be incorrect.
• B) A CPA is never allowed to use a taxpayer's estimates when preparing a tax return.
• C) The CPA should not recommend that a taxpayer take a certain position if there is any doubt as to whether the position would be approved by the IRS upon audit.
• D) The CPA must tell the IRS upon becoming aware that an error has been made on a past tax return.

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Definitions:

Homogenous Culture

A homogenous culture is one in which the members share similar values, beliefs, and customs, leading to minimal cultural diversity within the group.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, leading to increased interconnectedness and interdependence of global economies.

Second World Status

A Cold War-era term originally used to describe countries aligned with the Soviet Union and socialism, now sometimes used to refer to countries with intermediate levels of economic development.

International Politics

The study of relationships and interactions between countries, focusing on diplomacy, conflicts, alliances, and international policies.