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A new client, who operates a small unincorporated business, asks you to prepare his personal tax return based on a financial statement prepared by his

  1. A new client, who operates a small unincorporated business, asks you to prepare his personal tax return based on a financial statement prepared by his bookkeeper. When you go through his papers, you discover an $18,000 invoice, paid in cash, that was excludedin errorfrom his revenue for the year. When you query him about it, he insists that you DQ_! report the invoice because his income for the year is already too high. The most appropriate action on your part is to:
    1. Resign from doing any further work for this client.
    1. Prepare the return as instructed, but insist that you cannot be named on the return as the preparer and you will not be able to take responsibility for the accuracy of the return if Revenue Canada questions it.
    2. Prepare the return as instructed, but record in your working paper file and in your covering letter to client that the revenue figure was provided by the client.
    3. Ignore the client's instruction, and prepare the return correctly.
    4. Prepare the return as instructed, because your client is responsible for the financial statement and you are not professionally associated with its preparation.

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