What is tax planning? Explain the difference between tax evasion and tax avoidance and the role of each in professional tax planning.
> Which subpart and section of Circular 230 discusses each the following topics? a. Solicitation b. Negotiation of a taxpayer’s refund checks c. Who may practice before the IRS d. Authority to disbar or suspend from practice before the IRS
> Summarize what is discussed in each of the following sections of Circular 230: a. Subpart B, § 10.33 b. Subpart B, § 10.35 c. Subpart B, § 10.36 d. Subpart B, § 10.37
> Summarize what is discussed in each of the following sections of Circular 230: a. Subpart A, § 10.22(b) b. Subpart A, § 10.7(c)(1)(vi) c. Subpart B, § 10.24 d. Subpart B, § 10.34
> Summarize what is discussed in each of the following sections of Circular 230: a. Subpart C, § 10.51(a)(12) b. Subpart A, § 10.6(e) c. Subpart A, § 10.3(f) d. Subpart B, § 10.27
> What is the precedential value of an IRS written determination under IRC § 6110?
> Summarize what is discussed in each of the following sections of Circular 230: a. Subpart A, § 10.4(c) b. Subpart B, § 10.21 c. Subpart B, § 10.26 d. Subpart B, § 10.29
> What is collateral estoppel? How does it affect tax research and planning?
> What are the search connectors discussed in the text used by Checkpoint? Describe how each operates.
> How does the term “the unauthorized practice of law” apply to CPAs?
> Donna Deduction is a staff accountant for Dewey, Cheatham, and Howe, LLP. She and other staff raid the office supply cabinet for office supplies to take home to use. In addition to the standard paper, pens, paper clips, and so forth, the staff takes home
> What are the disadvantages of using an online tax service?
> Ethical professional behavior is the interaction of several standards. Identify these standards and briefly describe each.
> The text discusses three types of ethical reasoning. Identify them and give a short description of each.
> Briefly describe what is contained in each of the following tax services: a. Thomson Reuters CheckPoint b. CCH IntelliConnect c. LexisAdvance Tax d. Westlaw
> Who sets ethical rules for attorneys in the various states?
> Where would a tax researcher find pertinent committee reports?
> What is the purpose of citing relevant authority in research memos?
> Describe an online tax research system. What are the primary advantages of such a system?
> Identify and briefly describe the two major types of tax research issues.
> When a member learns of an error in a previously filed tax return or learns of an error during an audit, how is he or she to respond and still be in compliance with SSTS No. 6?
> Last year a taxpayer was audited by the IRS and an item of deduction on the tax return was disallowed. On this year’s tax return, the taxpayer would like to deduct a similar item. Discuss the circumstances under which a member may allow the taxpayer to t
> A member may use estimates in completing a tax return according to SSTS No. 4. When might the use of estimates be considered appropriate?
> What is deemed to be substantial authority under the IRC § 6662 regulations? Why is this important?
> According to SSTS No. 2, a tax return should be signed by a member only after reasonable effort has been made to answer all questions on the return that apply to the taxpayer. What are some of the reasonable grounds under which a member may sign a return
> What threshold does SSTS No. 1 provide for a tax practitioner regarding tax return positions? Could disclosure of the position influence that threshold?
> When must a member tax practitioner follow SSTS when preparing or signing a return?
> Discuss the precedential value of private letter rulings, determination letters, and technical advice memoranda. What role do these items play in conducting tax research?
> What are the SSTS? Who issues them? Discuss their principal objectives.
> Under the Confidential Client Information Rule of the AICPA Code of Professional Conduct, a CPA in public practice must not disclose confidential client data without the specific consent of the client. Under what conditions might a disclosure of confiden
> In each of the following (independent) situations, state which AICPA Code of Professional Conduct rule or principle (if any) is violated by a CPA? a. A CPA in public practice opens a tax practice and names the new firm “Jill’s Super Tax.” b. In return fo
> The tax researcher must find the facts as the first step in tax research. Give examples of the kind of information that a tax practitioner might want to obtain.
> A CPA in public practice must meet certain general standards under § 1.300.001 (the General Standards Rule). Discuss the four general standards of this rule.
> What specific tax-related situations may result in a conflict of interest for members in public practice under the Integrity and Objectivity Rule of the AICPA Code of Professional Conduct?
> Briefly list and discuss the primary threats to complying with the Independence Rule of the AICPA Code of Professional Conduct.
> Practicing CPAs generally are subject to the AICPA Code of Professional Conduct. What is its stated purpose?
> Not all individuals who for compensation prepare or assist with the preparation of all or substantially all of a tax return or claim for refund are subject to the duties and restrictions relating to practice in subpart B as well as subject to the sanctio
> A compensated individual who prepares or assists with the preparation of all or substantially all of a tax return or claim for refund must have a PTIN. What is a PTIN, and which individual(s) are required to obtain one?
> What is a technical advice memorandum? Who may request it? What kinds of issues are addressed therein? Does the IRS include technical advice memoranda in any official publication?
> A practitioner cannot give written advice under Circular 230 § 10.37 in which situations?
> What are the four best practices under Circular 230 § 10.33?
> It has been said that the tax research process is more circular than linear. Do you agree with this statement? Explain your answer.
> If a tax practitioner finds an error in a prior year’s tax return, what action (if any) must he or she take under Circular 230? What subpart and section addresses this situation?
> Tax planning falls into two major categories, the “open” transaction and the “closed” transaction. Discuss each type of transaction and describe how each affects tax planning.
> Several groups of individuals do most of the tax compliance work in the United States. Identify these groups and briefly describe the kind of work that each group does. In this regard, be sure to define the term enrolled agent.
> Discuss briefly the events leading to the passage of the 16th Amendment to the U.S. Constitution.
> What are the six basic steps in conducting tax research? Briefly discuss each step in the tax research process.
> May a tax practitioner who is a CPA form a CPA partnership with a former IRS agent who is also a CPA? What limits (if any) would be placed on such a partnership?
> In a modern, industrial society, the tax system is derived from several disciplines. Identify the disciplines that play this role in the United States. Explain how each of them affects the U.S. tax system.
> What is a determination letter? Which office of the IRS issues determination letters? What kinds of issues are addressed therein?
> What is tax planning? Explain the difference between tax evasion and tax avoidance and the role of each in professional tax planning.
> Have you ever imagined having one electronic device that does everything you would ever need? a. What commercial activities can be done with a cell phone? With a cell phone/PC combination device? What do you do when you’re on your cell phone? What do you
> Certificate authorities are an important part of a public key infrastructure (PKI). Research at least two certificate authorities and write a report that explains the different types of digital certificates that they offer.
> Security awareness training is necessary to teach employees “safe computing” practices. The key to effectiveness, however, is that it changes employee behavior. How can organizations maximize the effectiveness of their security awareness training program
> Read the article “Security Controls that Work” by Dwayne Melancon in the 2007 Issue, Volume 4 of the Information Systems Control Journal. Write a report that answers the following questions: 1. What are the differences between high-performing organizatio
> What are the limitations, if any, of relying on the results of penetration tests to assess the overall level of security?
> Enter the following data into a spreadsheet and then perform the following tasks: a. Calculate examples of these batch totals: • A hash total • A financial total • A record count b. Assume the followi
> a. Identify and discuss the basic factors of communication that must be considered in the presentation of the annual report. b. Discuss the communication problems a corporation faces in preparing the annual report that result from the diversity of the us
> Visit Symantec.com or any other security software vendor assigned by your instructor and download a trial version of encryption software. a. Use the software to encrypt a file. b. Send the encrypted file to your instructor and to a friend. c. Try to ope
> A purchasing department received the following e-mail. Dear Accounts Payable Clerk, You can purchase everything you need online—including peace of mind—when you shop using Random Account Numbers (RAN). RAN is a free service for Big Credit Card customers
> What kinds of documents are most likely to be turnaround documents? Do an internet search to find the answer and to find example turnaround documents.
> The Gardner Company, a client of your firm, has come to you with the following problem. It has three clerical employees who must perform the following functions: a. Maintain the general ledger b. Maintain the accounts payable ledger c. Maintain the acco
> A few years ago, news began circulating about a computer virus named Michelangelo that was set to “ignite” on March 6, the birthday of the famous Italian artist. The virus attached itself to the computer’s operating system boot sector. On the magical dat
> An auditor found that Rent-A-Wreck management does not always comply with its stated policy that sealed bids be used to sell obsolete cars. Records indicated that several vehicles with recent major repairs were sold at negotiated prices. Management vigor
> Discuss several ways that ERM processes can be continuously monitored and modified so that deficiencies are reported to management.
> Prepare flowcharting segments for each of the following operations: a. processing transactions stored on a sequential medium such as a magnetic tape to update a master file stored on magnetic tape b. processing transactions stored on magnetic tape to upd
> Given the following list of potential authentication credentials, identify as many combinations as possible that can be used to implement (a) a multi-modal authentication process and (b) a multi-factor authentication process. Consider both combinations
> a.Use the following facts to assess the time-based model of security for the ABC Company; how well does the existing system protect ABC? Assume that the best-, average-, and worst-case estimates are independent for each component of the model. • Estimate
> How do an organization’s business processes and lines of business affect the design of its AIS? Give several examples of how differences among organizations are reflected in their AIS.
> Do you agree that the most effective way to obtain adequate system security is to rely on the integrity of company employees? Why or why not? Does this seem ironic? What should a company do to ensure the integrity of its employees?
> Effective segregation of duties is sometimes not economically feasible in a small business. What internal control elements do you think can help compensate for this threat?
> What privacy concerns might arise from the use of biometric authentication techniques? What about the embedding of RFID tags in products such as clothing? What other technologies might create privacy concerns?
> You are the systems analyst for the Wee Willie Williams Widget Works (also known as Dub 5, which is a shortened version of 5 Ws). Dub 5 produces computer keyboard components. It has been producing keyboards for more than 20 years and has recently signed
> At 9:00., Andrew Mantovani, cofounder of the group Shadowcrew, received a knock at his door while chatting on his computer. For Mantovani and 27 others, that knock marked the end of Shadowcrew, which provided online marketplaces and discussion forums for
> Match the description in the right column with the information characteristic in the left column. 1. Relevant a. The report was carefully designed so that the data contained on the report became information to the reader 2. Reliable b. The manager wa
> What are the advantages and disadvantages of the three types of authentication credentials (something you know, something you have, and something you are)?
> From the viewpoint of the customer, what are the advantages and disadvantages to the opt-in versus the opt-out approaches to collecting personal information? From the viewpoint of the organization desiring to collect such information?
> The controller of a small business received the following e-mail with an authentic-looking e-mail address and logo: From: Big Bank [[email protected]] To: Justin Lewis, Controller, Small Business USA Subject: Official Notice for all users of Big
> a. Prepare a context diagram and a level 0 DFD to document accounts payable processing at S&S. b. Prepare a document flowchart to document accounts payable processing at S&S.
> On a Sunday afternoon at a hospital in the Pacific Northwest, computers became sluggish, and documents would not print. Monday morning, the situation became worse when employees logged on to their computers. Even stranger things happened—operating room d
> Explain what is meant by objective setting and describe the four types of objectives used in ERM.
> Do you agree with the following statement: “Any one of the systems documentation procedures can be used to adequately document a given system”? Explain.
> Which preventive, detective, and/or corrective controls would best mitigate the following threats? a. An employee’s laptop was stolen at the airport. The laptop contained personally identifying information about the company’s customers that could potenti
> The UCLA computer lab was filled to capacity when the system slowed and crashed, disrupting the lives of students who could no longer log into the system or access data to prepare for finals. IT initially suspected a cable break or an operating system fa
> The first column in Table 10-3 lists transaction amounts that have been summed to obtain a batch total. Assume that all data in the first column are correct. Cases a through d each contain an input error in one record, along with a batch total computed f
> The Moose Wings Cooperative Flight Club owns a number of airplanes and gliders. It serves fewer than 2,000 members, who are numbered sequentially from the founder, Tom Eagle (0001), to the newest member, Jacques Noveau (1368). Members rent the flying mac
> Consider the following two situations: For the situations presented, describe the recommendations the internal auditors should make to prevent the following problems. Situation 1: Many employees of a firm that manufactures small tools pocket some of
> Table 2-1 lists some of the documents used in the revenue, expenditure, and human resources cycle. What kinds of input or output documents or forms would you find in the production (also referred to as the conversion cycle)? TABLE 2-1 Common Business
> What are the advantages and disadvantages of having the person responsible for information security report directly to the chief information officer (CIO), who has overall responsibility for all aspects of the organization’s information systems?
> Explain why an organization would want to use all of the following information security controls: firewalls, intrusion prevention systems, intrusion detection systems, and a CIRT.
> With respect to the data processing cycle, explain the phrase “garbage in, garbage out.” How can you prevent this from happening?
> What is the relationship between COSO, COBIT 5, and the AICPA’s Trust Services frameworks?
> 1. Figure 5-4 shows the employees and external parties that deal with Heirloom. Explain how Heirloom could defraud the bank and how each internal and external party except the bank could defraud Heirloom. 2. What risk factor, unusual item, or abnormality
> a. Why should USAA collect data on which auto parts are fixed most frequently? What could it do with this data? b. Even though USAA offered to waive the deductible, the repair shops still managed to convince 95% of the owners to replace rather than repai
> Environmental, institutional, or individual pressures and opportune situations, which are present to some degree in all companies, motivate individuals and companies to engage in fraudulent financial reporting. Fraud prevention and detection require that
> Explain what an event is. Using the Internet as a resource, create a list of some of the many internal and external factors that COSO indicated could influence events and affect a company’s ability to implement its strategy and achieve its objectives.
> When U.S. Leasing (USL) computers began acting sluggishly, computer operators were relieved when a software troubleshooter from IBM called. When he offered to correct the problem they were having, he was given a log-on ID and password. The next morning,
> MonsterMed Inc. (MMI) is an online pharmaceutical firm. MMI has a small systems staff that designs and writes MMI’s customized software. The data center is installed in the basement of its two-story headquarters building. The data center is equipped with
> Reliability is often included in service level agreements (SLAs) when outsourcing. The toughest thing is to decide how much reliability is enough. Consider an application like e-mail. If an organization outsources its e-mail to a cloud provider, what is
> The ABC Company is considering the following options for its backup plan: 1. Daily full backups: 2. Weekly full backups on Saturdays, plus daily incremental backups: 3. Weekly full backups plus daily differential backup: All backups, whether partial or f
> Because improved computer security measures sometimes create a new set of problems—user antagonism, sluggish response time, and hampered performance—some people believe the most effective computer security is educating users about good moral conduct. Ric
