While preparing a client's individual federal tax return, the CPA noticed that there was an error in the previous year's tax return that was prepared by another CPA. The CPA has which of the following responsibilities to this client? Notify the IRS if the error could be considered fraudulent or could involve other taxpayers. Discuss the matter verbally with the former CPA and suggest that corrective action be taken for the client. Inform the client and previous CPA in writing, and leave it to their discretion whether a correction should be made. Inform the client and recommend corrective section. If a CPA is engaged by an attorney to assist in the defense of a criminal tax fraud case involving the attorney's client, information obtained by the CPA from the client after being engaged. Will be deemed privileged communication provided that the CPA prepared the client's tax return. Is not privileged because the matter involves a federal issue. Is not privileged in jurisdictions that do not recognize an accountant-client privilege. Will be deemed privileged communications under certain circumstances. A CPA purchased stock in a client corporation and placed it in a trust as an educational fund for the CPA's minor child. The trust securities were not material to the CPA but were material to the child's personal net worth. Would the independence of the CPA be considered to be impaired with respect to the client if the CPA is on the team performing an attest engagement for the client? Yes, because the stock would be considered an indirect financial interest that is material to the CPA's child. Yes, because the stock would be considered a direct financial interest and, consequently, materiality is not a factor. No, because the CPA would not be considered to have a material indirect financial interest in the client. No, because the CPA would not be considered to have a direct financial interest in the client