Which of the following statements is correct with regard to working papers prepared by an accountant?
A. The accountant can dispose of the working papers prepared by him or her as he or she pleases.
B. The accountant may need to justify the accountant's work before the Internal Revenue Service or a court.
C. The working papers prepared by the accountant are owned by the client.
D. The client does not possess the right of access to the working papers.
Answer: B
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a. Statement of retained earnings b. Statement of cash flows c. Statement of stockholders' equity d. Income statement
Discounting is the conversion of future cash flow amounts to their present value
Indicate whether the statement is true or false
Which of the following is true of an option contract?
A. If the offeree chooses not to buy the property, the consideration paid must be returned. B. The consideration paid for the option cannot be applied to the sale price. C. The death or incompetency of either party terminates an option contract. D. The offer cannot be revoked during the option period.
Title insurance is generally purchased only for real property
Indicate whether the statement is true or false