Mr. K employs X, Y, and Z to prepare income tax returns for taxpayers. X and Y collect the information from taxpayers and apply the tax laws. The return forms are completed by a computer service. One day, when certain returns prepared by X and Y were ready for their signatures, X was out of town for 2 weeks and Y was out of the office for the day. Which one of the following statements is true?

A. Z may sign the returns prepared by X and Y if Z reviews the information obtained by X and Y from the taxpayers and reviews the preparation of the returns.
B. Z may sign the returns prepared by X if Z reviews the information obtained by X from the taxpayers and reviews the preparation of the returns.
C. Z may sign the returns prepared by Y if he reviews the information obtained by Y from the taxpayers and reviews the preparation of the returns.
D. X and Y must sign the returns that each one prepared.

Answer: B. Z may sign the returns prepared by X if Z reviews the information obtained by X from the taxpayers and reviews the preparation of the returns.

Business

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