Reg 4 Flashcards
IRS doesn’t impose a penalty for a tax preparer that calculates a tax return ___________
INCORRECTLY
A CPA can provide client confidential information for a court _________ or to a ________ CPA society control panel
SUBPOENA; STATE
The 3 broad categories of misconduct disciplined by state boards are misconduct while performing ___________ services, misconduct outside the scope of performing accounting services and a _________conviction
ACCOUNTING; CRIMINAL
__________ organizes the licensure of CPAs
NASBA
penalty for substantial tax understatement is __%
20
When a statutory notice of deficiency is sent to a taxpayer, the taxpayer has ___ days to either ___ the deficiency or to petition with the ___ _____
90; PAY; TAX COURT
After an IRS audit, a taxpayer receives a 30 day letter and the taxpayer has 30 days to either request an ____________ appeal or ________ the adjustments proposed
ADMINISTRATIVE; ACCEPT
____________ rule limits a CPA’s negligence penalty to parties in __________and intended __________ party beneficiaries
ULTRAMARES; PRIVITY; THIRD
For an accountant to be considered negligent in common law they have to have breached the accountant’s duty of _____ and _____
CARE; LOSS
Best defense for a CPA in a lawsuit for common law fraud based on a CPA’s unqualified opinion on FS is Lack of __________ or _______ to deceive
SCIENTER; INTENT
Negligence has 4 elements 1) duty of _____ 2) _______( lack of care) 3) ___________ 4) injury
CARE; BREACH ;CASUALTY;
The restatement rule is a rule that states that if a CPA acted negligently in an Audit, they are liable to the client and foreseeable class of persons who are known will be ________ on the audit
RELIANT
Fraud has 5 elements 1) ___________ of material fact, 2) intent to ___________ 3) actual reliance by ___________ 4) defendant’s intent to induce the plaintiff’s reliance on the misrepresentation and 5) damages
MISREPRESENTATION; DECEIVE; PLAINTIFF
When a CPA acts with Negligence, the client must prove the CPA acted with lack of ____ _______
DUE CARE
Restatement Law states that if CPA acts negligently, the CPA is liable to the client and any ___________ class of person who the CPA knows will be reliant on the audit
FORESEEABLE
