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Torn Anderson is a CPA who is engaged to prepare the annual tax return for Mary Wench, the CEO of a company to which Tom
Torn Anderson is a CPA who is engaged to prepare the annual tax return for Mary Wench, the CEO of a company to which Tom provides regular consulting services. Es Fear Mary brings Tom several brown bags full of documents relating to her income an expenses. This year, when Tom is sorting through the documents, he finds something Ie hadn't seen in previous years: a deposit receipt from a foreign trust in the Cayman slands. The receipt for $50,000 was written by a Cayman Islands attorney, with a notation that it was for deposit in a trust account for the benefit of Mary Wench. Torn tsked Mary about the receipt. \"What is this?" he asked. Forget about it,\" she said. \"I want you to act like you never saw this." l'om is concerned that Mary may be evading taxes by not reporting income from the rust, and he is also concerned about the need to disclose the existence of the foreign rust on her tax return. Should Tom immediately withdraw from the engagement without discussing it further, 0 convince Mary to report the foreign trust and any related income, report the inciden o the IRS or other authorities, and continue to do consulting for the company
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