An Accounting Firm Insists That All of Its Professional Staff

question 8

Multiple Choice

An accounting firm insists that all of its professional staff members and partners provide copies of their most recent federal and state income tax returns to the partner in charge of regulatory compliance.These submissions must occur no later than the April 15 due date for filing these tax returns.This policy:

• A) Is mandated by the AICPA's Code of Professional Conduct
• B) Is reasonable to ensure compliance with professional standards, but is not required
• C) Is a discreditable act by the accounting firm
• D) Is an illegal violation of employee privacy under the federal tax law

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Definitions:

Structural Unemployment

Unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Cyclical Unemployment

A type of unemployment that results from business cycle fluctuations in the economy, typically increasing during recessions and decreasing during expansions.

Unemployment

A situation where individuals who are capable of working and willing to work cannot find jobs.

Labor Force Participation Rate

This term refers to the percentage of the working-age population that is either employed or actively looking for work.