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earnstyle [38]
2 years ago
14

Upon discovering fraudulent data in a client’s tax return that the client would not correct, a CPA withdraws from the engagement

. How should the CPA respond if asked by the successor CPA why the relationship was terminated?
Business
2 answers:
ExtremeBDS [4]2 years ago
7 0

Answer:

Even though a client cannot force CPA to engage in illegal activities, like any other employer cannot force an employee to commit a crime, there exists a -accountant-client privilege that cannot be violated. This means that the accountant cannot disclose any information regarding past clients unless ordered by a court or authorized by the client himself/herself.

So, before discussing any previous events, the successor CPA must obtain the client's permission to discuss any events related to the previous relationship.

Allushta [10]2 years ago
3 0

Answer:

I would suggest that the client requests permission for us to discuss all matters on a platter.

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What are the good manner the service provider must demonstrate when communicate with customer​
blsea [12.9K]

Answer:

There are certain key points that a service provider should always keep in mind while communicating with their customers. Those points are explained in the below mentioned explanation part of the answer.

Explanation:

  • Create the best first impression with their customers by greeting them with great lines.
  • Always stay polite and kind throughout the conversation.
  • Listen patiently and address each of their doubts in an easy and understandable way possible.
  • Do not waste time in any sort of random gossip as that might irritate the customers.
  • Most importantly always stay positive throughout the conversation as this might create a great impact.
5 0
3 years ago
What does 4. Financial management means
tester [92]
It's the p<span>rocess used to manage the financial resources of a business</span>
7 0
3 years ago
Read 2 more answers
In which of the following cases is it most likely that an increase in the size of a tax will decrease tax revenue? Answers: A) T
DiKsa [7]

Answer:

The correct answer is option D.

Explanation:

An increase in the size of tax is likely to increase the tax revenue when the price elasticity of supply, as well as price elasticity of demand, are both large.  

The imposition of tax will cause an increase in the price of the product. If the price elasticity of demand is higher, an increase in the price will lead to a more than proportionate decrease in demand.  

At the same time, high price elasticity of supply means that when the tax is imposed the sellers will be able to reduce quantity more easily.  

So when less output is produced and demanded the tax revenue will also be lower.

6 0
3 years ago
The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed
jeka57 [31]

Answer:

$1,290,000

Explanation:

Given that,

Cash flow to creditors = -$85,000

Cash flow to stockholders = $170,000

Firm’s net capital spending for 2018 = $1,250,000

Firm reduced its net working capital investment by $45,000

Cash Flow from Assets:

= Cash Flow to Creditor + Cash Flow to Stockholders

= -$85,000 + $170,000

= $85,000

Cash Flow from Assets = OCF - Net Capital Spending - Change in Net Working Capital

$85,000 = OCF -  $1,250,000 - (-$45,000)

OCF = $85,000 + $1,250,000 - $45,000

        = $1,290,000

3 0
3 years ago
The Assembly Department produced 1,000 units of product during March. Each unit required 1.25 standard direct labor hours. There
frutty [35]

Answer:

Debit Work in process for $15,625

Debit Direct labor time variance for $625

Credit Direct labor rate variance for $650

Credit Wage payable for $15,600

Explanation:

Before preparing the journal, the following calculations are done first:

Wage payable = Actual hours * Actual rate per hour = 1,300 * $12 = $15,600

Direct labor time variance = (Actual hours - Standard hours) * Standard direct labor rate = (1,300 - (1,000 * 1.25)) * $12.50 = $625 Unfavorable

Note: Direct labor time variance is Unfavorable because Actual hours is greater than Standard hours.

Direct labor rate variance = (Actual rate - Standard rate) * Actual hours = ($12 - $12.50) * 1,300 = -$650 Favorable

Note: Direct labor rate variance if Favorable because Actual rate is lower than the Standard rate.

Work in process = Wage payable + Absolute value of direct labor rate variance - Direct labor time variance = $15,600 + $650 - $625 = $15,625

The journal entries will now look as follows:

<u>Date           Particulars                                         Debit ($)           Credit ($)   </u>

Mar. 31       Work in process                                  15,625

                  Direct labor time variance                      625

                  Direct labor rate variance                                                 650

                  Wage payable                                                               15,600

<u><em>                   (To record the direct labor in the Assembly Department.)       </em></u>

4 0
3 years ago
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