Question: Ms . Smith ( age 5 6 ) , a real estate professional, has hired you to assess her retirement preparedness. As you review the

Ms. Smith (age 56), a real estate professional, has hired you to assess her retirement preparedness. As you review the data she provided, you discover that she reported $800,000 of income and $765,000 of expenses in tax year 2023, resulting in $35,000 of adjusted gross income.Ms. Smith also provided you with a record of her personal spending in 2023 which was about $20,000/month. You educated Ms. Smith regarding allowable business expenses and disallowed personal expenses. Which type of audit should Ms. Smith be concerned about?
Group of answer choices
A computer generated (DIF) audit
A related party audit
A lifestyle audit
A targeted compliance audit

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