Jack made a mathematical mistake in computing her tax liability. Which audit program will likely catch Jack's mistake? A. DIF system B. Mathematical correction C. Document perfection D. Information matching E. None of these

Which of the following statements about the Commissioner’s powers is most correct?   a. The Commissioner cannot request a taxpayer to provide information in writing.   b. The Commissioner can remove documents from a taxpayer’s premises.   c. The Commissioner is entitled to access a taxpayer’s premises at any reasonable time without notice.   d. The Commissioner needs to obtain a search warrant in order to enter a taxpayer’s premises.

A CPA –    (a)  may use a client’s estimate of dollar amounts in preparing a tax return only if the client provides a sworn affidavit stating that supporting documents are lost.    (b)  generally may use a client’s estimated amounts in preparing a tax return sub-ject to determining that the amounts are reasonable based on all known facts.    (c)  may use her / his own estimate of some dollar amount if the client’s estimate is deemed to be either inadequate or excessive.   (d)  may never under any circumstances put an estimated amount on a client’s tax return and in fact would risk (i) losing her / his state CPA license and/or (ii) criminal sanctions imposed by the IRS for doing so.

This corporate con stated that she stole from the company because she believed it was "okay" to take the money because there wasn't any actual person she was stealing from, and it was right because she was being underpaid. According to the fraud triangle, her reasoning is most closely associated with O Availability Rationalization O Need/Motivation O Opportunity

Individuals who believe they relied on misstated financial statements to make a decision andhave suffered losses as a result will issue an action known as aa. Breach of contract.b. Tort.c. Securities litigation.d. Constructive fraud.

3. Fraud is an _____________ misstatement of which any amount found during the audit will be considered material.   Question 3 options:   a)  Unintentional   b)  Planned   c)  Proposed   d)  Intentional

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Which action is not considered an act discreditable to the accounting profession? a) Being finally determined by a court of competent jurisdiction to have violated any of the federal antidiscrimination laws. b) Having a bank collect notes received from a client in payment of fees. c) Failing to follow standards and procedures established by governmental agencies in audits of grants by those agencies. d) Negligently permitting another to sign a document containing materially false and misleading information.

For each of the following situations, indicate the amount of the penalty that could be imposed on the tax return preparer: a. A tax return preparer understates the taxpayer's tax liability with a frivolous position and does not disclose the position. The greater of $ percent of the income derived by the tax preparer for an undisclosed unrealistic position. or b. A tax return preparer fails to furnish his identifying number. c. A tax return preparer aids a taxpayer (an individual) in understating a tax liability. d. A tax return preparer endorses and cashes a client's tax refund check.

Do the tax agent need to have a professional scepticism? Or just professional judgement is enough