QUESTION 4 Which of the following items dealing with IRS would not rise to the level of an audit (aka examination)? O Amatehematical error A matching notice An automatically generated return using 3rd party data All of these are not examinations QUESTIONS During the course of an examination, the IRS Agent identifies an item that is classified as long term capital gain which should have been ordinary income. Which basic principle of IRS examinations led the auditor to this adjustment? Beneficial effect of the manner in which an item is reported Missing items Materiality Relationship to other items on the return