ACCA Strategic Professional · Advanced Taxation (UK) · Ethical and professional issues arising from the giving of tax planning advice
Under PCRT, which of the following is the correct approach when a member prepares a client's tax return using figures that rely on information supplied by the client?
A member may rely in good faith on information supplied by the client, but must take reasonable care and make further enquiries where it looks incorrect, inconsistent or incomplete. A full audit is not required, and the client's signature does not remove the member's professional responsibility.
- AThe member may rely on the client's information in good faith, but should take reasonable care and question information that appears incorrect, inconsistent or incompleteCorrect
- BThe member must independently audit all client records before filing
- CThe member bears no responsibility for any inaccuracy because the client signs the return
- DThe member must send all supporting records to HMRC with the return
Explanation
PCRT allows members to rely on client information in good faith, but they must take reasonable care, and must make enquiries where information appears incorrect, inconsistent or incomplete. A full audit is not required. Responsibility is not removed simply because the client signs the return.
Did you get it right without looking?
One question tells you little. A timed set on Ethical and professional issues arising from the giving of tax planning advice shows your real accuracy, how long you take and where you lose marks.
More Ethical and professional issues arising from the giving of tax planning advice questions
- Your firm acts for Mrs Okafor. You advise her that an error in a prior-year return must be disclosed to HMRC. She refuses to make any disclo…
- A client asks Priya, a tax adviser, to explain the purpose of the UK General Anti-Abuse Rule (GAAR). Which statement is correct?
- Which of the following is an example of legitimate tax mitigation rather than avoidance involving artificial arrangements?
- Priya, a tax adviser, is asked by a client to implement a scheme marketed by a promoter. The scheme uses a series of circular transactions w…
- An adviser has submitted a suspicious activity report about a client concerning suspected under-declared profits. The client then asks wheth…
- During a review of a client's self-assessment return, an adviser finds the client omitted £40,000 of rental income in a prior year. The clie…