If a Client Has Violated Federal Tax Laws

question 60

Multiple Choice

If a client has violated federal tax laws,

• A) the auditor must notify the IRS.
• B) and the amount is significant, the auditor should communicate with those charged with governance.
• C) the noncompliance generally will not impact the financial statements.
• D) the auditor does not need to evaluate the effects of the noncompliance on other aspects of the audit.

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Definitions:

Phylogeny

The study and description of the evolutionary history and relationships among species or groups of organisms.

Divergent Evolution

An evolutionary process where related species or populations develop distinct traits due to different environments or selective pressures, leading to increased genetic differentiation.

Phylogeny

The evolutionary history and relationships among individuals or groups of organisms, often depicted as a phylogenetic tree.

Relationship

A connection, association, or involvement between two or more entities.