Which of the Following Is CORRECT About a CPA's Responsibility

question 37

Multiple Choice

Which of the following is CORRECT about a CPA's responsibility with regard totax return positions under Statements on Standards for Tax Services No. 1 (SSTS No. 1) ?

• A)A CPA may not base his or her position on authority that is not approved by the IRS under Section 6662 (accuracy-related penalty).
• B)A CPA may sign a return which has a tax position that has a realistic possibility of being sustained on the merits.
• C)A CPA may not sign a return which has any tax position that is not fully disclosed.
• D)All of these are correct.

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Definitions:

Preoccupation

The state of being absorbed with or engrossed in a particular thought, activity, or concern, often to the exclusion of other considerations.

Arranged Marriages

Marriages where partners are selected by individuals other than those getting married, often with consideration of familial, cultural, or social interests.

Collectivist

Pertaining to cultures or societies where people are integrated into strong, cohesive groups and prioritize the group's needs over individual desires.

Individualist

A person who prioritizes personal independence and self-reliance over collective goals or group cohesion.