Strayer ACC565 midterm exam
Question 1
When a taxpayer contacts a tax advisor requesting advice as to the most advantageous way to
dispose of a stock, the tax advisor is faced with
Answer
a restricted-fact situation.
a closed-fact situation.
an open-fact situation.
a recognized-fact situation.
Question 2
During the course of an audit, a CPA discovers an error in a prior return. According to the
Statements on Standards for Tax Services, the CPA should
Answer
ask the client for permission to disclose the error to the IRS.
withdraw from the engagement.
inform the IRS of the error, regardless of whether the client grants permission.
correct the error in the current year's tax return.
Question 3
A Technical Advice Memorandum is usually
Answer
an internal IRS document describing alternative legislative proposals.
part of a Tax Court decision.
Question 1
When a taxpayer contacts a tax advisor requesting advice as to the most advantageous way to
dispose of a stock, the tax advisor is faced with
Answer
a restricted-fact situation.
a closed-fact situation.
an open-fact situation.
a recognized-fact situation.
Question 2
During the course of an audit, a CPA discovers an error in a prior return. According to the
Statements on Standards for Tax Services, the CPA should
Answer
ask the client for permission to disclose the error to the IRS.
withdraw from the engagement.
inform the IRS of the error, regardless of whether the client grants permission.
correct the error in the current year's tax return.
Question 3
A Technical Advice Memorandum is usually
Answer
an internal IRS document describing alternative legislative proposals.
part of a Tax Court decision.
