Hossain and Nunes Company, CPAs, decides to subcontract a portion of its tax return preparation work to Morsman Tax Preparation Services, an unaffiliated income tax service provider.
What does Hossain and Nunes Company need to do to outsource tax work to the service provider?
Ensure that the service provider is current in its income tax obligations.
Ensure that the service provider has appropriate controls in place to protect the confidentiality of client data.
Disclose to the client that services may be performed by a third-party service provider.
Have a contractual agreement with the service provider to protect the confidentiality of client information.
A.) Items 3 and 4 are required.
B.) Items 1, 2, and 3 are required.
C.) Items 2, 3, and 4 are required.
D.) All four items are required.
The answer is Items 2, 3, and 4 are required.
