According to the AICPA Statements on Standards for Tax Services, a CPA should do all of the following except
A)The CPA should only recommend to a client that a position be taken or prepare a return with a position that can be sustained administratively or judicially.
B)The CPA should not rely on a third party in preparing a return.
C)A CPA may recommend a tax return position that differs from the way an item was previously treated in an IRS examination, IRS appeal, or a court decision for that taxpayer, unless that taxpayer is bound to a specific treatment for the item in the later year.
D)All of the above
E)None of the above

Question

Quizplus · Accepted Answer

According to the AICPA Statements on Standards for Tax Services, a CPA may rely on a third party in preparing a return, as long as the CPA exercises due diligence in reviewing the information provided by the third party. Therefore, option B is incorrect. The other options are correct and should be followed by a CPA.