A CPA is aware that a sole proprietor client has "skimmed" unrecorded cash receipts and thus not reported them to the Internal Revenue Service. If the CPA signs the entity's tax return as a CPA after preparing the return, he/she would be violating which AICPA Rule of Conduct? A) Rule 101 Independence.

B) Rule 102 Integrity & Objectivity.

C) Rule 203 Accounting Principles.

D) Rule 301 Confidential Client Information.

Question

Business

Carmelo Ford

20 May, 21:10

A CPA is aware that a sole proprietor client has "skimmed" unrecorded cash receipts and thus not reported them to the Internal Revenue Service. If the CPA signs the entity's tax return as a CPA after preparing the return, he/she would be violating which AICPA Rule of Conduct? A) Rule 101 Independence.

B) Rule 102 Integrity & Objectivity.

C) Rule 203 Accounting Principles.

D) Rule 301 Confidential Client Information.

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Answers (1)

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Matthias Olson · Answer 1

B) Rule 102 Integrity & Objectivity

Explanation:

Rule 102 states that in carrying out an assignment there should be integrity and objectivity, facts must not be misrepresented, there should be no conflict of interest, and his judgement must not be influenced by others.

The CPA did not correct the financial records which excluded cash receipts in a bid to avoid tax charges. The facts on the records are misleading.

He also signed the document containing false information.