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:

High Risk

A situation or investment that carries a significant chance of loss or failure.

High Value

Denoting something that possesses great importance, worth, or usefulness, especially in terms of monetary or material worth.

Procurement

The process of sourcing and acquiring goods and services from external sources for an organization.