In reviewing your corporate client's tax return for last year,you discovered that it overstated the beginning balance of its Patent account by $15 million.The client amortizes patents over a15-year period on a straight-line basis,so the company's pretax income was understated by $1 million last year.You informed your client over this error,and the client acknowledged that an error had been made.Nonetheless,your client insists that,for tax purposes,it intends to continue to amortize this patent balance in the same manner and for the same amounts as it did last year.You have a duty to:

Question

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As a tax return preparer, you have a duty to prepare accurate and complete tax returns for your client. Knowing that the beginning balance of the Patent account was overstated, and that the client's pretax income was understated by $1 million, you cannot ethically continue to prepare the current year's tax return for this client without making the necessary adjustments. By choosing option B, you are showing your client that you cannot participate in dishonest or unethical conduct, and that you will only prepare tax returns that accurately reflect the client's financial situation.

In Reviewing Your Corporate Client's Tax Return for Last Year,you