Question

List an advisor's duties that are excluded under the AICPA's Statements on Standards for Tax Services.

A. A tax preparer is not obligated to update professional advice based on developments following its original conveyance.
B. A tax preparer is not obligated to verify client tax return data exists under the record keeping requirements.
C. A tax preparer is not obligated to verify client provided information if the information is not suspicious on its face.
D. Both A and C.

Answer 1

The correct answer is D. Both A and C

The AICPA's Statements on Standards for Tax Services exclude certain duties for tax preparers, such as updating professional advice and verifying client-provided information.

Step-by-step explanation:

The AICPA's Statements on Standards for Tax Services outline the duties of tax preparers and provide guidance on ethical behavior and professional responsibilities. There are certain advisor's duties that are excluded under these standards:

1. A. A tax preparer is not obligated to update professional advice based on developments following its original conveyance. This means that if a tax preparer provides advice to a client and there are subsequent developments or changes in tax laws, the preparer is not required to update the advice.
2. C. A tax preparer is not obligated to verify client provided information if the information is not suspicious on its face. This means that if a client provides information during the tax return preparation process, the preparer is not required to independently verify the accuracy of the information, as long as it does not appear suspicious.

Therefore, the correct answer is D. Both A and C, as both the duties described in options A and C are excluded under the AICPA's Statements on Standards for Tax Services.