1-71. d. Under Rule 1.100.001 of the AICPA Code of Conduct, CPAs cannot make self-laudatory statements not based on verifiable facts.
Page 20
1-72. c. See Circular 230, § 10.30.
1-73. c. Under Rule 1.800.001 of the AICPA Code of Conduct, CPAs cannot practice public accounting under a firm name that is misleading. A sole practitioner is not a company. The only exception is when a sole practitioner survives the death or withdrawal of all other partners or shareholders; he or she can continue to practice under a firm name for up to two years after becoming a sole practitioner.
Page 20
1-74. b. SSTS No. 4 allows a member to use reasonable estimates in the preparation of a tax return.
Pages 23-24
1-75. d. Under Rule 1.510.001of the AICPA Code of Conduct, CPAs are allowed to take contingent fees in tax matters if they are based on judicial proceedings or the findings of governmental agencies.
Page 18
1-76. c. Under Rule 1.700.001 of the AICPA Code of Conduct, CPAs cannot reveal confidential client information without the consent of the client unless it is to an investigative body, trial board, quality review body, or court of law.
Pages 19-20
1-77. a. SSTS No. 4 requires members to disclose to the IRS the use of estimates when fire or computer failure has destroyed the relevant records.
Pages 23-24
1-78. d. Under Subpart A, § 10.7(c)(2)(i) of Circular 230, persons who are disbarred or suspended are not allowed to practice before the IRS.
Circular 230
1-79. b. Under Subpart B, § 10.21 of Circular 230, practitioners must notify clients of any noncompliance with the tax law. A similar rule is found in SSTS No. 6.
Page 11
1-80. a. Circular 230, Subpart A, § 10.7(a) states that a taxpayer can appear on their own behalf before the IRS.
b. 1.520.001 Commissions and Referral Fees Rule
c. SSTS No. 3 Certain Procedural Aspects of Preparing Returns
d. Under Statement on Standards for Tax Service (SSTS) No. 1, a member must have a good-faith belief that a recommended position has a realistic possibility of being sustained if challenged.
Circular 230, Pages 20, 22, 24
1-81. a. Circular 230, Subpart C, § 10.51 states that a practitioner can be disbarred or suspended from practice before the IRS for disreputable conduct.
b. The knowledge of client omissions rule is found in Circular 230, Subpart B, § 10.21.
c. 1.400.200 Records Requests. Members must comply with the rules and regulations of authoritative regulatory bodies, such as the members’ state board(s) of accountancy, when they perform services for a client and are subject to the rules and regulations of such a regulatory body.