Patel, a member, is a sole practitioner CPA and provides bookkeeping, financial statement, and tax preparation services to his clients Patel uses a third party service provider to enter client bookkeeping information (coded checks, deposits) and to do bank reconciliations for some clients Patel uses a different third party service provider for cloud based record storage, software application hosting, and e nle tax transmittal services Which of the following is TRUE regarding the disclosures that Patel is required to provide to his clients regarding his third party service providers Patel is not required to disclose the use of either third party service provider 2 For the third party service provider bookkeeping services, Patel should inform the client(s) involved, prior to disclosing confidential client information and preferably in writing, that he may use a third party service provider 3 For the third party service provider hosting cloud based services, Patel should inform the client(s) involved, prior to disclosing confidential client information and preferably in writing, that hemay use a third party service provider 4 Patel is required to disclose the use of both third party service providers

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 07, 2024

Patel, a member, is a sole practitioner CPA and provides bookkeeping, financial statement, and tax preparation services to his clients. Patel uses a third-party service

Patel, a member, is a sole practitioner CPA and provides bookkeeping, financial statement, and tax preparation services to his clients. Patel uses a third-party service provider to enter client bookkeeping information (coded checks, deposits) and to do bank reconciliations for some clients. Patel uses a different third-party service provider for cloud-based record storage,

software application hosting, and e-nle tax transmittal services

Which of the following is TRUE regarding the disclosures that Patel is required to provide to his clients regarding his third-party service providers?

Patel is not required to disclose the use of either third-party service provider.

2. For the third-party service provider bookkeeping services, Patel should inform the client(s) involved, prior to disclosing confidential client information and preferably in writing, that he may use a third-party service provider.

3. For the third-party service provider hosting cloud-based services, Patel should inform the client(s) involved, prior to disclosing confidential client information and preferably in writing, that hemay use a third-party service provider.

4. Patel is required to disclose the use of both third-party service providers.