A CPA may prepare tax returns using estimates provided by the taxpayer if it is impracticable to obtain exact data and the estimates are reasonable.

Question

Quizplus · Accepted Answer

According to the American Institute of Certified Public Accountants' (AICPA) Code of Professional Conduct, a CPA may use estimates provided by the taxpayer if obtaining exact data is impracticable, but the estimates must be reasonable based on the information available. However, the CPA still has a responsibility to exercise due professional care and maintain professional skepticism when relying on estimates provided by the taxpayer.

A CPA May Prepare Tax Returns Using Estimates Provided by the Taxpayer