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:

Job Activities

Tasks, duties, and responsibilities performed by individuals in their occupations.

Strategic Leadership

The capability of influencing others towards the achievement of long-term organizational goals by setting vision, direction, and crafting strategies.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives to be accomplished.

Inspiration

The process of being mentally stimulated to do or feel something, especially something creative or motivating.