IRS Circular 230

Question 1

The Government Accountability Office GAO is a federal agency

Answer 1

that promulgate standards for audits of Federal financial assistance receiptants

They can also release Audit reports, congressional testimony

Question 2

Significant influence

Answer 2

would involve participation that has direct impact on the financial statements.

Question 3

The CPA should not recommend

Answer 3

extreme or doubtful position because the chances of an audit are low

Question 4

In unusual situations

Answer 4

a departure from FASB may be necessary to keep the F/S from being misleading

Question 5

A CPA may not

Answer 5

endorse a check for any reason

Question 6

A member in public practice

Answer 6

cannot accept a commission for recommending a product or service to a client where the accountant performs audits or reviews

Question 7

For a NON-Audit client the CPA can still perform consulting services despite

Answer 7

1) Lack of independence

2) No written scope of engagement

Question 8

Circular 230 allows people who are NOT CPAs, Attorneys or enrolled agents

Answer 8

to engage in limited practice before the IRS