Question

QUESTION 3 BugFree, Inc. is a Teas oorpostion that dos business in Okiaema Tas and New Meco Bgle hed ee a Te CPA to preare h t returms. Trina told Bgree that ey did not need to file a tax am in New Mexicn, but she realy dd nut dack the res ugree cved tx and penaly o e New Maxico Taxation and Depar i Dugroe Tria for making the r, who is laly to win? a ina because she cid not hvea duy to know New Maxco laws O Tina becan she sa Teas CPA, not a New Mesico O O bcase uge d on s rofesionsisoinon and ws in Od Trine becaune gree anmet show eace on Ta's algment QUESTION4 Deny Har O contced Fit Bark and ed be h F H r to obn s bk ns Fc ma to Diny's b nd the o a going through cky dvoroe Wd Dey impersonaon of Fec a er OA Caes becathe cal was net hed by Felc Nbae he sot in nci O N bec F dd otmn t de d bec Fa w t che

Answer 1

QUESTION 3:

Answer : (D) Trina because bugfree cannot show reliance on trina's judgement.

Trina is likely to win the sue, because the client need not be rely on the words of CPA. He must verify whether the statements by CPA are true and real.

QUESTION 4:

Answer : (D) No, because felicia was not a client.

Destiny harris's license cannot be revoked, since there is no client relationship between him and Felicia harris. An CPA license may be revoked in the following situations,

• Violating standard accounting policies and found guilty of professional malpractice.
• If he fails to file an income tax return or files a fraudulent return.
• If CPAs employed by federal government agencies can find themselves facing disciplinary actions imposed by SEBI.