Sympatico Accountants engages ABC Tax Preparers to prepare routine tax returns during the busy season.

Sympatico Accountants engages ABC Tax Preparers to prepare routine tax returns during the busy season. Under the AICPA code, which action should Sympatico take prior to sharing its clients’ information with ABC?

A.) Inform its tax clients that the firm may be using an outside service when providing professional services.

B.) List a notice in the local newspaper that the firm may be using an outside service when providing professional services.

C.) Sympatico would not be required to take any particular action in this situation.

D.) Ask clients to sign a waiver limiting Sympatico’s liability in the event ABC makes errors in Sympatico’s tax returns.

The answer is Inform its tax clients that the firm may be using an outside service when providing professional services.