A newly acquired client, who carries on a business as a sole proprietor, brings a list of business expenses to his accountant. The client also provides the accountant with a dollar amount of the total revenue. He instructs his accountant to prepare an income statement and income tax return based on this information. The accountant has a quick look at the expenses. The expenses seem to be consistent with the type of business of the client and nothing stands out as unreasonable. After the client's income statement is prepared, it reflects $ 80 comma 000 of revenue and $ 55 comma 000 of expenses, and the income tax return is filed on that basis