Ling has hired CPA Gracie to complete this year's Form 1040. Ling uses online accounting software to keep the books for her interior design sole proprietorship. Ling tells Gracie that a $5,000 amount for business supplies is "close enough" to report for this year's deduction. Gracie can use this estimate in completing the Form 1040.

Question

Quizplus · Accepted Answer

Gracie, as a CPA, is required to ensure that all information on tax forms is accurate and verifiable. Estimations like "close enough" do not meet the standards of due diligence required for tax reporting.

Ling Has Hired CPA Gracie to Complete This Year's Form