Write a memo discussing the scenarios addressed on pg. 156 and pg. 157. ( There Should be 1 scenario on pg. 156 and 4 on pg. 157) Use the information presented throughout the chapter to respond and explain your option to each of these situation.

Consider the follwing scenarios (1) You assured your cient that a particular expenditure was deductible only to find out later that it was not. However, it is unlikely the item will be detected by the IRSDo you tell your client about your mistake and change the form, or do you let it stand as it is? (2) You discover that the dient's previous year's return, which someone else prepared, listed a deduction $3000 in excess of the actual expenditure. The mistake was not intentional and the IRS will probably not detect the eror. Should you correct the eror, costing your dlient additional liability? What if you prepared the return the previous'year so that the mistake was yours? (3) You are preparing a tax return for a very wealthy dient, who can pro- vide you with excellent referrals. You have reason to think the client is presenting information that will reduce his tax liability inappropriately Should you inquire about the veracity of this information or just prepar the tax form with the information as given?" 10 (4) The accounting firm you work for sells tax savings strategies to clients, demanding a 30% contingency fee of the tax savings plus out of pocket expenses. The company will defend its "strategy' in an IRS audit, but not in court, and refund a piece of the fee if back taxes come due. Is what your company doing acceptable? What obligation do you have