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:

Charisma

A personal quality that gives an individual influence or authority over large numbers of people.

Transformational Leadership

A leadership approach where the leader collaborates with teams to pinpoint necessary changes, develops a vision to steer the change through motivation, and implements the change alongside dedicated group members.

Emotional Role

The expected emotional behavior and expression that an individual adopts in a specific social or work role.

Head Start Programs

Federally funded programs in the United States aimed at promoting school readiness for children from low-income families through education, health, and social services.