Pierre, a CPA, Was Convicted of Stealing Money from His

question 4

Multiple Choice

Pierre, a CPA, was convicted of stealing money from his clients and deliberately preparing personal tax returns that were false. In addition, Pierre will likely

• A) need to take additional training courses to upgrade his tax skills.
• B) need to defend himself to prove non-negligent performance.
• C) be charged with misconduct by his professional institution (or order).
• D) have lack of privity with the federal and provincial tax authorities.

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Definitions:

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Payback Period

The amount of time required for an investment to generate cash flows sufficient to recover its initial cost, a measure of an investment's breakeven point in time.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investment, and financing activities.

Cost Recovery

The process of regaining the value of an expense or investment over time through revenue or savings.