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:

Internship Program

A structured and supervised professional experience provided by an organization for a limited period, often for students or recent graduates.

Capital Stock

The total physical, non-human assets of a company or economic system used in the production of goods and services.

Retail Value

The price at which goods are sold to the final consumer, inclusive of markups by retailers.

Directly

In a straightforward or unmediated way, often referring to a direct cause and effect relationship or manner of communication.