According to the Statements on Standards for Tax Services, If

question 23

Multiple Choice

According to the Statements on Standards for Tax Services, if a CPA believes that a client's prior- year tax return contains false information, the CPA should report this to the

• A) AICPA.
• B) SEC.
• C) IRS.
• D) None of the above. The CPA does not report the false information to any external agencies, unless required by law.

---

Definitions:

Spillovers

Effects of an economic activity that impact third parties who are not directly involved in the activity, potentially leading to externalities.

Marginal Cost

The added cost incurred from the production of an extra unit of output.

Total Revenue

The total amount of money generated by a business from the sale of goods or services before any expenses are subtracted.

Life Expectancy

The average number of years a person is expected to live based on demographic factors such as current age, gender, and geographic location, calculated from statistical data.