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

question 38

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

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Definitions:

Jurisdictional Allegations

Claims made in a legal document asserting the court's authority to hear and decide a case based on geographic location, subject matter, or the parties involved.

Numbered Allegations

Specific accusations or claims listed numerically in legal complaints or documents.

General Allegations

Broad claims or assertions made in a legal context without providing specific details or evidence.

Prayer For Relief

The portion of a legal document, such as a lawsuit or petition, where the petitioner specifies what remedy they are seeking from the court.