Which of the following situations would most likely be resolved in a correspondence audit? A. verification...

Which of the following situations would most likely be resolved in a correspondence audit?

A. verification of a taxpayer's qualifications for the EITC

B. The determination whether 23 of a construction company's workers are employees or independent contractors

C. Whether a particular transaction resulted in capital gain or ordinary income

D. Review of all tax records of an S Corporation (sales of $20 million and 40 employees) for the past three years

Expert Solution

Correspondence audit is basically an audit undertaken by IRS through a mail, asking for a clarification or additional information on the issues found from the tax returns filed.

A. Verification of taxpayer's qualification for EITC.

EITC means earned income tax credit given by IRS to there workers. IRS have set up various helping hands for workers to get the free tax help from VITA. Since EITC involves submission of various paper works. It might not resolve through the correspondance audit

B. The determination whether 23 of a construction company's workers are employees or independent contractors

This might require going through the terms of agreement of the company with the employees. Thus it is possible to resolve this through a correspondence audit

C.Whether a particular transaction resulted in capital gain or ordinary income

YES, this can be resolved through the correspondence audit by communicating with the tax payer and asking for additional information /evidences

D.Review of all tax records of an S Corporation (sales of $20 million and 40 employees) for the past three years

No, This activity requires going through too many records, which might not practically be possible via Correspondence audit.

ekkarill92 answered 2 years ago

An audit team would be most likely to use attributes sampling in which of the following...

An audit team would be most likely to use attributes sampling in which of the following situations? Multiple Choice a. Performing analytical procedures during the planning stages of the audit. b. Evaluating management's integrity during the client acceptance process. c. Determining the effectiveness of the audit committee in evaluating the entity's control environment. d. Examining purchase requisitions for proper authorization.

P_1 Which of the following research situations would be most likely to use a between subjects...

P_1 Which of the following research situations would be most likely to use a between subjects research design? A. .Examining ethnic differences in reading comprehension among middle school children. B. Investigating the long-term effectiveness of a stop-smoking treatment by comparing participants craving for cigarettes after 2 months and 6 months of treatment. C. Examining academic performance of the Texas State University students by comparing their mean GPA to the national average GPA of undergraduate population in the U.S. D. All...

10. Which of the following research situations would be most likely to use an independent-measures design?...

10. Which of the following research situations would be most likely to use an independent-measures design? – 2pts a. Examine the development of vocabulary as a group of children mature from age 2 to age 3 b. Examine the long-term effectiveness of a stop-smoking treatment by interviewing subjects 2 months and 6 months after the treatment ends c. Compare the mathematics skills for 9th -grade boys versus 9th -grade girls d. Compare the blood-pressure readings before medication and after medication...

1. Which of the following goods would be the most likely to be subject to a...

1. Which of the following goods would be the most likely to be subject to a government-imposed tax? A Cereal B Bottles of alcohol, such as whiskey and gin C Shoes 2. Which of the following is likely to have the largest elasticity of supply? A The producer of vanilla ice cream B The producer of yachts C A dentist 3. Assume that as your income increases, your consumption of burgers decreases. We can assume that your income elasticity of...

In which of the following situations would the Fed have the most power to stimulate the...

In which of the following situations would the Fed have the most power to stimulate the economy? - the federal funds rate is zero and the inflation rate is 0% - the federal funds rate is zero and the inflation rate is 2% Does the preceding question and answer describe why the Fed prefers inflation of 2% as opposed to inflation of 0%? yes no

4) In which of the following situations would a court hold likely hold Barney liable for...

4) In which of the following situations would a court hold likely hold Barney liable for copyright infringement? Explain for each one why or why not. (a) At the library, Barney photocopies 10 pages from a scholarly journal related to a topic on which he is writing a term paper. (b) Barney makes leather handbags and sells them in his small leather shop. He advertises his handbags as “Vutton handbags” hoping that customers might mistakenly assume that they were...

1) Which of the following components of IT contingency planning is most important? a. Verification of...

1) Which of the following components of IT contingency planning is most important? a. Verification of systems routines b. Security over the contingency site c. Documentation of the plan 2) Which of the following is the best answer regarding differences between the COSO and ERM frameworks; i) Monitoring ii)Information iii)Risk Response iv) Strategical Objectives v) Control Activities Group of answer choices a. i, iii, & v only b. ii & v only c. iii & iv only d. i, ii...

Which of the following would be most likely to increase the supply of loanable funds and...

Which of the following would be most likely to increase the supply of loanable funds and lead to low interest rates? a. Expansionary monetary policy that resulted in high rates of inflation. b. Constant policy shifts that generate uncertainty and reduce investment. c. Demographic shifts that increase the number of people in age categories with high saving rates relative to the number in age categories with a strong demand for loanable funds. d. Large budget deficits that push the government...

Which of the following would the board of directors of an organisation most likely need to...

Which of the following would the board of directors of an organisation most likely need to know as part of their organisation’s cyber security risk reporting framework: Select all that apply. 1. Cyber security budgets 2. Feedback on cyber security events 3. Leadership roles for cyber security 4. Links between cyber security objectives and organisational objectives 5. Officers responsible for making cyber security decisions 6. Vendor due diligence

Which of the following audit procedures most likely will involve sampling? A. Risk assessment procedures performed...

Which of the following audit procedures most likely will involve sampling? A. Risk assessment procedures performed to obtain an understanding of internal control. B. Tests of automated application controls when effective information technology general controls are present. C. Analyses of controls to determine the appropriate segregation of duties. D. Testing of process for approval of credit to customers for sales on account.

Question