Question

A CPA who concludes that a difference of opinion may result in a material representation of fact should discuss these concerns with the

a) Client's attorney
b) AICPA Code of Professional Conduct
c) Client's competitors
d) Client's board of directors

Answer 1

A CPA should discuss any concerns about material misrepresentation with the client's board of directors, which is the correct initial action in line with professional ethics.

Step-by-step explanation:

A CPA (Certified Public Accountant) who concludes that a difference of opinion may result in a material misrepresentation of fact is obligated to address these concerns within the governance structure of the client's organization. The appropriate initial course of action would be to discuss the issue with the client's board of directors or those charged with governance. This is in line with the CPA's professional ethics and responsibilities, as outlined in the AICPA Code of Professional Conduct, to ensure that the financial information is fair and accurately presented. This action serves to protect the integrity of the financial reporting process and adheres to the standards of professional conduct required by CPAs.