Question #1 (AICPA.080977REG-1C) | | |
(NOTE: This is a CPAexcel simulated Exam Question, not AICPA licensed Material)
Tax preparer Margie is wondering: Why should CPAs make reasonable efforts to obtain and provide for the client appropriate answers to all questions on a tax return? | A. The question may be important in determining taxable income or loss, so its omission may detract from the quality of the return. | | B. The CPA is obligated to sign the preparer's declaration, which states that the return is true, correct, and complete. | | C. A and B. | | SSTS No. 2 lists both A and B as grounds for attempting to answer all questions on a return. | | D. None of the above. | Question #2 (AICPA.151005REG-BL) | | |
A client suing a CPA for negligence must prove each of the following factors except | A. Breach of duty of care. | | B. Proximate cause. | | C. Reliance. | | C is the best answer, for reliance is not an element of the negligence cause of action. | | D. Injury. | Question #3 (AICPA.082031REG-1 C) | | |
Which of the following is true? | A. Client Tim told CPA Cho that he wished to take a particular deduction that Cho knows must be documented. Cho should ask Tim whether he has kept, or could obtain, the relevant documents. | | SSTS No. 3 provides that a CPA should make "appropriate inquiries" to determine whether a condition for deductibility or other tax treatment has been met. | | B. CPA Harris asked Client Shavell why the rental income, that she had enjoyed in the previous three years when Harris had done her taxes, was not reflected in this year's records. Shavell's answer was evasive and incomplete. Harris need not inquire further. | | C. CPA Seyhun is preparing Manne's tax return when he notices that Manne was claiming only $20,000 in income from the LMN partnership. Seyhun also does