puntant (CPA) named Orville Maloney works for a mid-sized accounting firmpreparing tax returns for various clients. One of his clients, a small businessming a significant deduction that Orville knows is not fully supported by the taxemma Orville faces is whether he should comply with his client's request topotentially saving the client a substantial amount of money, but violating taxional integrity and adherence to ethical standards.Open Sansyou will identify and research a tax case involving an ethical tax issue. (Examplesnterest in tax practice, multiparty representation conflict, contingent fee taxso on. Refer to the textbook for examples for other similar examples.)

For Orville Maloney, the ethical conflict is whether he should go along with his client's desire to…

Answered: puntant (CPA) named Orville Maloney…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter2: Working With The Tax Law

Section: Chapter Questions

Problem 28P

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Similar questions

Tax accountants are expected to Group of answer choices refuse to go along with clients who claim doubtful deductions. understand that questionable schemes are only the responsibility of the client. maintain lucrative client relationships. be “open-minded” when preparing tax returns for their clients.
A tax accountant is told by his superior to take a position on a tax matter that is not supportable by the facts in order to make the client happy. This is a common practice in the firm and the likelihood of the IRS questioning it is remote. Would you go along with your supervisor?
Mark Buffalo works for a mid-size accounting firm in Boston. One day he overhears a colleague talking to a friend on his cellphone. Mark gasps when he realizes the colleague is sharing one of their client's confidential information, likely as an insider trading tip. As a member of the AICPA, Mark is required to report this discreditable act to the Boston chapter of the AICPA. Select one: True False
Jane, a tax practitioner, has reviewed the law on how State Xs income tax applies to a clients web-based consulting business but is unable to reach a conclusion for which she has a high level of confidence. Assuming that Jane is a knowledgeable and experienced tax professional, which Guiding Principles of Good Tax Policy might not be followed by State X?
Ethics are a key quality for any accounting practitioner. Tax professionals face a unique set of ethical duties as they cannot physically see many elements of a tax return. Analyze the ethical duties of a tax professional. Critique the authoritative professional sources that govern tax practitioners’ responsibilities, including the purpose behind these responsibilities?
3.3) You work for the Chartered Accountancy firm Bevan&Bevan Ltd, which has, for many years, been engaged to perform accounting and corporation tax work. Currently, you have discover that some practices are incorrect, and some behaviours could even be label as tax evasion. Required: Explain the code of conduct and its importance for preventing such behaviours and actions that could be taken.
Each of the following situations involves a possible violation ofthe AICPA Code of Professional Conduct. For each situation, state the applicable section ofthe rules of conduct and whether it is a violation.a. Emrich, CPA, provides tax services, management advisory services, and bookkeepingservices and also conducts audits for the same nonpublic client. Because the firm issmall, the same person often provides all the services.b. Franz Marteens is a CPA, but not a partner, with 3 years of professional experiencewith Roberts and Batchelor, CPAs. He owns 25 shares of stock in an audit client ofthe firm, but he does not take part in the audit of the client, and the amount of stockis not material in relation to his total wealth.c. A nonaudit client requests assistance of M. Wilkenson, CPA, in the installationof a local area network. Wilkenson had no experience in this type of work andno knowledge of the client’s computer system, so he obtained assistance from acomputer consultant. The…
Drag and drop the best response into the blank box. Shelley Bowman, CPA, obtained her designation in 2000. Since that time, she has built up a significant tax practice. In late 2021, a new client approached Shelley and asked her to perform an audit engagement. Believing this could lead to a substantial amount of tax work in the future, Shelley agreed, even though she had never completed an audit, nor taken any assurance courses since 1980. Violation of Competence No violation of the Rules of Professional Conduct Violation of Independence - self-interest Violation of the Charter of Conduct Violation of Independence - familiarity Violation of Independence - self review
4.Which of the following define lowballing:Single choice. Offering the client a low fee in the hope that they will tell others and increase the auditors client base. Offering the audit at an artificially high fee to ensure that a good margin is made on the fee Offering the audit an artificially low fee in order to get the work before increasing fees later or offering other services to the client. Offering the client tax services only.
Choose the answer that fails to explain how high ethical standards protect a tax preparer. Providing a quality product that helps them increase client retention. Minimizing the risk of being subject to preparer penalties. Showing integrity in the return preparation process. Eliminating the need for preparer due diligence notes.
Which of the following statements is false regarding the ethical obligations of professional accountants? Multiple choice question. they must seek to maximize the owners' profits. they must continually upgrade their skills in order to be competent their obligations are outlined in a code of ethics. they must treat sensitive information confidentially Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discussing the audit fee, Allnet’s management suggests a fee range in which the amount depends on the reported profit of Allnet. The higher its profit, the higher will be the audit fee paid to Thorne’s firm. Who are the parties potentially affected by this audit and the fee plan proposed? What are the ethical factors in this situation? Explain. Would you recommend that Thorne accept this audit fee arrangement? Why or why not? What are some ethical considerations guiding your recommendation?

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