A CPA performs tax advisory services,but it does not provide tax return preparation services.For this CPA,the most significant conflict of interest that is likely to arise is between:
A) The AICPA's Code of Professional Conduct and IRS Regulations regarding professional conduct
B) The Internal Revenue Code and state tax codes
C) The client and the IRS
D) The duty of loyalty to the client and a duty to the public interest

Question

Quizplus · Accepted Answer

As the CPA provides tax advisory services but does not prepare tax returns, they may face a conflict of interest between their duty of loyalty to the client and their duty to act in the public interest, especially if the client engages in activities that are potentially harmful or illegal. For example, the CPA may need to advise the client to disclose certain information or to take steps to minimize their tax liability, even if that goes against the client's wishes. This can create tension and potential conflicts of interest between the client's interests and the public interest.

A CPA Performs Tax Advisory Services,but It Does Not Provide