Question
Need help with the following multiple choice question below.Please provide the correct answer and explain why. Question 1: Carey, in 20X2, gave tax advice in
Question 1: Carey, in 20X2, gave tax advice in a letter to Jackson, a tax only client. For reasons other than the advice given, Jackson engages Urban for her tax work in 20X3. Carey had not been engaged to assist in the implementation of the actions called for by the advice or to inform Jackson if subsequent tax law changes would adversely affect the advice given. In 20X3, the tax law changes and the advice Carey gave in 20X2 if followed again in 20X3 and subsequent years would increase the amount of taxes Jackson will pay. Carey is-
A) not required to inform Jackson about the change in the law.
B) required to inform Jackson about the change in the law.
C) required to inform Urban about the tax advice given to Jackson
D) required to recall the letter to Jackson because the tax law changed
Question 2: Morton, a partner in the Seattle office of Pine & Birch, CPAs, is the lead engagement partner for the audit of Northwest Wholesale. Fifty percent of the work is handled by the Seattle office; and ten percent, by the Portland office. Deutsch, a partner and the firm's technical audit expert, is located in the Portland office. Deutsch spends about 30 to 40 hours each year consulting on the Northwest Wholesale audit.Which of the following statements is correct?
A) Morton's partners in the Seattle office who do not work on the Northwest Wholesale account are covered members with the Northwest Wholesale audit.A is correct
B) Morton's partners in the Portland office who do not work on the Northwest Wholesale account are covered members with respect to the Northwest Wholesale audit.
C) Neither of the above statements are correct.C is not correct
D) Both of the above statements are correct
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