The Privilege of Confidentiality Applies to a CPA Tax Preparer

question 152

Multiple Choice

The privilege of confidentiality applies to a CPA tax preparer concerning the client's information relative to:

• A)Financial accounting tax accrual workpapers.
• B)A tax research memo used to determine an amount reported on the tax return.
• C)Building a defense against a penalty assessed for the use of a tax shelter.
• D)Building a defense against a charge brought by the SEC.

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Definitions:

Discretionary Fiscal Policy

Government strategy that includes altering its expenditure and taxation levels to oversee and impact a country's economic conditions.

Government Securities

Government securities are financial instruments issued by the government to finance its expenditures, offering investors a return in the form of interest payments.

Private Demand

The desire and willingness of individuals and entities to purchase goods and services in a free market.

Crowding Out

A situation where increased government spending leads to reduced investment in the private sector, often due to higher interest rates.