Question

Under Statements on Standards for Tax Services No. 3, (SSTS No. 3) a CPA preparing a tax return should perform all of the actions EXCEPT:

a. independently confirm the accuracy of the taxpayer's information
b. obtain additional information if the taxpayer's information appears to be incorrect or incomplete
c. review the prior year's return when feasible
d. determine when conditions for a deduction have been met

Answer 1

Under SSTS No. 3, a CPA preparing a tax return should perform various actions, except determining when conditions for a deduction have been met.

Step-by-step explanation:

Under Statements on Standards for Tax Services No. 3 (SSTS No. 3), a CPA preparing a tax return should perform various actions to ensure accuracy and compliance. However, there is one action that a CPA should not perform according to SSTS No. 3:

1. determine when conditions for a deduction have been met

A CPA should:

1. Independently confirm the accuracy of the taxpayer's information by verifying the sources, documents, and calculations used.

2. Obtain additional information if the taxpayer's information appears to be incorrect or incomplete.

3. Review the prior year's return when feasible to identify any carryforward items or changes that may affect the current tax return.