Statements of Position



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This Statement considers the responsibility of a certified public accountant in connection with the use of estimates in the preparation of a Federal tax return which he signs as preparer. A certified public accountant may prepare tax returns involving the use of estimates if either such use is generally acceptable or, under the circumstances, it is impracticable to obtain adequate actual data. When estimates are used, they should be presented in such a manner as to avoid the implication of greater accuracy than exists. The CPA should satisfy himself that estimated amounts are reasonable under the circumstances.

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Tax accounting -- United States; Tax returns -- United States; Accountants -- Legal status, laws, etc. -- United States


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed statement on Responsibilities in tax practice, entitled : Use of Estimates;Use of Estimates; Exposure draft (American Institute of Certified Public Accountants), 1968, Jan. 17



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