Which of the Following Statements About the Statements on Standards

question 83

Multiple Choice

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

• A)A CPA is never allowed to use a taxpayer's estimates when preparing a tax return.
• B)The CPA must tell the IRS upon becoming aware that an error has been made on a past tax return.
• C)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.
• D)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.

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Definitions:

Three Decimal Places

A numerical expression rounded or precise to three digits to the right of the decimal point.

Graph

A visual representation of data or of a mathematical function on a set of axes.

Simplified

Refers to a condition wherein a mathematical expression or equation has been reduced to its most basic or straightforward form.

Three Decimal Places

It refers to numerical values rounded or precise to the thousandths place, displaying three digits to the right of the decimal point.