Acpa prepares a client's tax return containing business travel expenses without inquiring about the existence of documentation for the expenses. which statement best describes the consequence of the cpa's lack of inquiry? a. the client will not be subject to a fraud penalty. b. the client will not owe an understatement penalty if the return is audited and the expenses disallowed. c. the cpa may be charged with preparing a fraudulent return. d. the cpa may be assessed a tax return preparer penalty. e. none of the above

d. The CPA may be assessed a tax return preparer penalty.

Explanation:

A CPA is responsible for verification while preparing the tax return of a client, and accordingly the tax return is to be prepared reflecting all the true expenses, and incomes.

In this manner the CPA shall be careful that nothing is defaulted in the tax return. In the given instance the CPA did not verify the expense, whether actual or fraud, and allowed while preparing the tax return.

Accordingly, he shall be held liable for any mischief, and thus, he can be assessed as fr the tax return preparer penalty.

the answer is: guns or butter

hope i

-lavira : )

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.