Answered: Do the tax agent need to have a…

Business

Accounting

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Under what circumstances can a CPA be paid on a commission basis? Why do you think the regulation…

A: CPA stands for Certified Public Accountant. A CPA is a licensed accounting professional who has met…

Q: What are tax preparers asked to do to prevent filing returns with stolen identities?

A: Tax identity theft refers to the process of using someone's identity and personal information to…

Q: Jack made a mathematical mistake in computing her tax liability. Which audit program will likely…

A: An audit program, also called an audit plan, is an action plan that documents what procedures an…

Q: Need Help with this Question

A: Step 1: Lisa, a CPA, feels that she cannot act as an aggressive advocate for tax clients in today's…

Q: A tax accountant is told by his superior to take a position on a tax matter that is not supportable…

A: Ethics refers to a set of moral principles and values that guide behavior and decision-making in a…

Q: I want correct

A: Demand-side economists criticized the income taxation of capital gains because:c. they believed that…

Q: What is the goal of a tax audit? A. To make sure you paying your imposed fines B. To make sure…

A: Tax audit means audit of the information provided in tax returns like income and expenditure are…

Q: Your friends just questions your intent to take an accounting tax class. They do not understand why…

A: 2. Professional Relevance:Career Opportunities: Tax knowledge is crucial for many careers, not only…

Q: What is a primary responsibility of taxpayers during a tax audit? a) Providing false information to…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: How may an accounting firm affect non-tax professionals' perceptions of a disputed topic with a…

A: Introduction: At the organizational level, ethical leaders foster trust through their behaviors and…

Q: He is the accountant for the business, so should I include that in my explanation? That particularly…

A: The principles of accounting have to be followed with line and spirit by following the principles…

Q: The concept of reverse onus, as it relates to taxation in Canada, suggests: Select one:

A: In the intricate landscape of Canadian taxation, the concept of reverse onus holds significant…

Q: In the Eisner v. Macomber tax case, what were the facts of case, court decision, and reasons stated…

A: Eisner v. Macomber case was a tax case that was held before the United States Supreme Court.

Q: Financial thought turned to the theory of social solidarity - due to the failure of the social…

A: The given statement is True

Q: Give an idea or opinion on how to catch those practicing tax evasion.

A: In this question . we will explain that how to catch those practicing tax evasion.

Q: Some people earn money that is paid to them in cash and then do not include this as income when they…

A: All people require to pay tax on all income they earn either in cash or through any other mode when…

Q: The Tax Code was created to punished people who did not pay taxes. True False

A: Tax code is created for individual and who are in businesses .In this tax code lots of sections,…

Q: Section 61 of the IRC (Internal Revenue Code) has been labeled as "too broad" and "vague" by some…

A: Internal Revenue Code (IRC), Section 61 (a) describe the gross income as the income from the sources…

Q: You are assisting a client with a transaction that produces a most favorable tax result. The client…

A: Answer: We have situation where the client has told that the outcome is dependent on one court case…

Q: In the case of income tax there are high taxpayer costs but low government costs ? True or False

A: Income tax is known as the form of tax that is imposed on the income or profits of individuals or…

Q: the deciosion of court in Eisner v. Macomber tax case and why?

A: Eisner V. Macomber tax case : Case Insight No. : , 252 U.S. 189 (1920), presented before the U.S…

Q: What is the purpose of the following control procedures (i.e., what threats is it designed to…

A: • The purpose of giving checks for the paychecks is used to detect the fraudulent employee in an…

Q: Tax evasion is defined as a willful attempt to defraud the government. What are some examples of an…

A: Tax Evasion: It is the effort by an individual or a corporation to avoid paying the taxes that are…

Q: Is it right to avoid taxes as much as you can?

A: Taxation- The laws and regulations that govern the financial services industry are referred to as…

Q: Work through the self-study problem in this section if you need to, but do not post your answer.…

A: Taxation on income is a type of direct taxation which is paid by citizens of a nation on the income…

Q: taxpayer has no obligation to pay more taxes than are legally owed, and a [CPA] has a duty to the…

A: Standards for tax services are the standards that describe the responsibilities that CPA’s have…

Q: The Tax Administration has the right to refuse to provide evidence of the source (s) of income used…

A: Introduction:- The questions presented are related to tax and VAT, and they require a factual…

Q: Anti-avoidance provisions _______. a.eliminate tax planning by taxpayers. b.are provisions in the…

A: Anti-avoidance provisions are rules or measures put in place by governments or regulatory bodies to…

Q: It is the tax legislator who determines the value of the offer true Error 0

A: Value is determined as per law rules and regulations

Q: Will you be imprisoned for non-payment of tax? Is it absolute?

A: Income Tax- Income tax is a tax levied on a person's or a company's earnings for the previous year.…

Q: Is it necessary for the tax agent to use professional skepticism? Alternatively, expert judgment is…

A: Introduction: Auditing is the inspection of a company's financial statements to evaluate whether or…

Q: How might an accounting firm influence whether non–tax practitioners view a contentious issue with a…

Q: Demand-side economists criticized the income taxation of capital gains because: a. it discriminated…

A: Approach to solving the question: Understand Demand-Side Economics : Focuses on boosting economic…

Q: Тах potentially abusive of the spirit of the Income Tax Act. occurs when taxpayers legally apply tax…

A: Income tax is the legal obligation of taxpayers towards the tax authorities. It is levied on income…

Q: Under what responsibility would investigating tax fraud be? tax accounting, Financial Accounting, or…

A: Tax fraud is a type of deception by misrepresenting or suppressing taxable income to evade or reduce…

Q: To assess the tax repercussions, it is crucial to comprehend the type of perks that a firm provides…

A: Benefits provided by employers: when an employee works for a company, then every employer has to…

Q: A tax system that does NOT include capital gains in the tax base: Question 4 Select one: a.…

A: When someone sells a capital asset, like stocks, bonds, property or other investments for more than…

Q: Tax preparers often have a difference of opinion with their clients as to how some transactions…

A: As a tax preparer, the role involves ensuring that tax returns comply with the Internal Revenue…

Q: Taxation can be used to reduce the welfare loss arising from a negative externality. Select one: O…

A: True

Question

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

Expert Solution

Step 1

Auditing means the inspection of financial accounts of the company to determine if the records are accurate as per the rules and regulations of accounting or not. There are two types of auditor’s i.e. internal auditors and external auditors that carry out the auditing process.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following statements is/are correct criteria of the good tax? a. Good taxation should have more possible effects of distorting relative prices. b. It is regarded as good tax if various taxpayers with different incomes are taxed the same. c. It is regarded as good tax if the tax burden is spread fairly among various taxpayers. d. Administrative simplicity in the tax system ensures neutrality and equality. a. a, b, c and d b. a, b and d c. c and d. d. b, c and d
N4 When discussing types of business entities during a client interview, a tax preparer should: A)Not discuss different types of entities since this might imply the client has made the wrong choice. B)Recommend to the client their best choice for business entity after a thorough interview. C)Present the facts, but not recommend a particular type of entity. D)Always recommend choosing a sole proprietorship since this will minimize the client's tax preparation fees.
In what circumstances can a taxpayer challenge an assessment outside the ordinary appeal process. Discussion should be strictly based on statutory and common law. Explain briefly.
When taxes are "too high", taxpayers start to cheat on their taxes and dangerous consequences can result.
Is skepticism necessary for a tax agent? Alternatively, one's expert judgment may suffice.
Which is not a requisite for deductibility in general? Group of answer choices subjected to withholding tax Fringe benefits Ordinary and necessary properly substantiated connected with the trade or business
The tax laws treat capital gains and losses differently from ordinary gains and losses. True or false
Taxpayers are having a difficult time due to the large number of tax rules in place. To put it another way, what is the meaning of "substance above form?" Can you think of any examples?
Which of the following is NOT a power granted to the tax authority? a. The power to arrest. b. The power to audit. c. The power to enter, search and remove documents and records d. The power to request information from third parties.
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.
Which of the following is a correct statement? O Tax avoidance includes failure to pay tax on unreported income from legal sources The IRS estimates that more income tax is lost from evasion involving illegal activities than from unreported legal activities, O Tax avoidance is legal O Tax evasion includes the application of legal loophole to reduce tax liability
Does the concept of a progressive (and fair) tax system become undermined by the ability to tweak the Tax Code to suit Congress' purposes in terms of driving social policy?