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:

External Factors

Conditions or events outside an organization that can affect its performance and decision-making processes, such as economic trends, regulations, and competition.

High-Mach Personality

Individuals with a Machiavellian personality trait, characterized by manipulation and a focus on personal gain over ethical considerations.

Social Skills

Abilities related to effective communication, empathy, relationship-building, and interacting harmoniously with others in a variety of social contexts.

Manipulative

Inclined to influence or control others to one's own advantage, often in a deceptive way.