Martina advises her tax client, Breslin Baked Goods, to disclose a matter by

attaching a special form to its corporate tax return. Breslin refuses and threatens to

replace Martina with another CPA. Which statement best describes what Martina

should do under the tax profession’s ethics standards in this situation?

A. Consider whether to withdraw from the engagement and reevaluate the relationship.

B. Terminate the engagement and report Breslin to the IRS Office of Professional Responsibility.

C. Draft a memo for the files indicating that Breslin is a difficult client.

D. File the return in the manner specified by the client (without the disclosure).

The ethics of a profession are the rules and regulation put in place by the professional body for the profession to guide the conduct of each professionals in the practice of their profession. The ethics of the profession also specify the punishment that will be given to any members that break the rules set for them in code of professionals practice. The pratictioners in the performance of their duties must be objective, show high level of integrity, and must not be seen to be misrepresenting the facts.

The CPA are responsible for given professional advice to their client, they also prepare the tax returns of their client and also they help their client in filing their tax return with the tax authority (IRS). In this case, since Breslin has refused to disclose a matter, Martina has to terminate the engagement and report Breslin to the IRS office of professional responsibility. So that in the event that the IRS now discovered that Breslin Baked Good has not been paying the correct tax they supposed to pay to the government, Martina would have been free of the crime, because he has reported the matter to the IRS to free himself from the blame and not to be regarded as an accomplice in the crime.