You are a CPA in practice at a local CPA firm working with individual tax clients. A client comes into your office and says that she has her own business but doesn’t want to report all of her income.

You are a CPA in practice at a local CPA firm working with individual tax clients. A client comes into your office and says that she has her own business but doesn’t want to report all of her income. Considering your risk, the risk to your client, and ethical considerations, what should you tell her? Remember to include research on the subject.

DQ2 AUDITING RESEARCH SERIES 2

Describe the standard-setting process for auditing. How does this process differ from the standard-setting process for accounting?

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