A client, Henry Price, fills out his client questionnaire for the previous year and on it he provides information for the preparation of his individual income tax return. The IRS has never audited Henry's returns. Henry reports that he made over 100 relatively small cash contributions totaling $26,735 to charitable organizations. In the last few years, Henry's contributions have averaged about $12,000 per year. For the previous year, Henry's adjusted gross income was roughly $325,000, about a 10% increase from the previous year. Required: Applying Statements on Standards for Tax Services No. 3, determine whether you can accept at face value, Henry's information concerning his charitable contributions. Now assume that the IRS recently audited Henry's return for two years ago and denied 75% of that year's charitable contribution deduction because the deduction was not substantiated. Assume also that Henry indicates in the previous year that he contributed $27,000 (instead of $26,375). How do these changes of fact impact your earlier decision