With Respect to the Audit Process,which of the Following Statements

question 127

Multiple Choice

With respect to the audit process,which of the following statements is incorrect?

• A)Only the Appeals Division of the IRS has the authority to settle tax disputes based on the hazards of litigation.
• B)The IRS does not publish the factors it uses for audit selection purposes annually in the Commissioner's Report.
• C)For a Form 1040 that is filed on April 11,2011,if the taxpayer has not received an audit notification from the IRS by the end of 2011,the return may still be audited.
• D)If the taxpayer makes a math error on the Form 1040,an office audit automatically is triggered.

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Definitions:

Expected Monetary Value(EMV)

A method employed in making decisions that calculates the mean result in situations where the future holds potential but uncertain events.

Expected Monetary Value

The predicted average amount of money gained or lost from an investment or decision, calculated by considering all possible outcomes and their probabilities.

Gross Profits

Total revenue of a company minus the cost of goods sold.

Payoff Table

A tabular representation of the outcomes (payoffs) of different decisions under various states of nature.