Which of the Following Is CORRECT About a CPA's Responsibility

question 35

Multiple Choice

Which of the following is CORRECT about a CPA's responsibility with regard to tax return positions under Statements on Standards for Tax Services No. 1 (SSTS No. 1) :

• A) A CPA may not base his or her position on authority that is not approved by the IRS under Section 6662 (accuracy-related penalty).
• B) A CPA may sign a return which has a tax position that has a realistic possibility of being sustained on the merits.
• C) A CPA may not sign a return which has any tax position that is not fully disclosed.
• D) All of the above statements are correct.

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Definitions:

Operant Conditioning

An educational method where the intensity of an action is adjusted by rewards or penalties.

Behavioral Perspective

A psychological approach examining how behavior is influenced by interactions between individuals and their environments.

Fixed Beliefs

Persistent convictions or opinions that are hard to change.

Projecting

The psychological defense mechanism of attributing one's own attitudes, feelings, or desires to someone or something else.