Question: i need typed answer with explanation don't chatgpt answer. and give me a explanation why remaining option are false i will thumb up. Patel, a
i need typed answer with explanation don't chatgpt answer. and give me a explanation why remaining option are false i will thumb up.
Patel, a member, is a sole practitioner CPA and provides bookkeeping, financial statement, and tax preparation services to his clients. Patel uses a third-party service provider to enter client bookkeeping information (coded checks, deposits) and to do bank reconciliations for some clients. Patel uses a different third-party service provider for cloud-based record storage, software application hosting, and -file tax transmittal services.
Which of the following is TRUE regarding the disclosures that Patel is required to provide to his clients regarding his third-party service providers?
1.Patel is not required to disclose the use of either third-party service provider.
2.For the third-party service provider bookkeeping services, Patel should inform the client(s) involved, prior to disclosing confidential client information and preferably in writing, that he may use a third-party service provider.
3.For the third-party service provider hosting cloud-based services, Patel should inform the client(s) involved, prior to disclosing confidential client information and preferably in writing, that he may use a third-party service provider.
4.Patel is required to disclose the use of both third-party service providers.
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