According to the Statements on Standards for Tax Services, if a CPA believes that a client's prior-year tax return contains false information, the CPA should report this to the
A)IRS.
B)SEC.
C)AICPA.
D)None of the above. The CPA does not report the false information to any external agencies, unless required by law.

Question

Quizplus · Accepted Answer

The Statements on Standards for Tax Services do not require the CPA to report false information to external agencies unless required by law. The CPA's duty is to advise the client of the issue and recommend corrective action. Reporting to external agencies without a legal requirement would violate the client's confidentiality.

According to the Statements on Standards for Tax Services, If