Question 10 (2 points) Listen A company's new outside CPA determines that the company underpaid its income taxes due to an omission on last year's tax return, which was prepared by the prior accountant. According to the Statement on Standards for Tax Services, the CPA preparing this year's tax return: Must report immediately to the IRS. Must advise the client of the omission and recommend appropriate action. Should refuse to sign the current tax return. Is not expected to address issues that relate to previous tax returns. 64

A company's new outside CPA determines that the company underpaid its income taxes due to an omission on last year's tax return, which was prepared by the prior accountant. According to the Statement on Standards for Tax Services, the CPA preparing this year's tax return: Must report immediately to the IRS. Must advise the client of the omission and recommend appropriate action. Should refuse to sign the current tax return. Is not expected to address issues that relate to previous tax returns