A large, national accounting f

A large, national accounting firm decides it is time to outsource the preparation of income tax returns to an organization in India that has performed outsource services for other U.S. CPA firms. The firm will transmit income tax information necessary to prepare the returns electronically and staff accountants in India will prepare the return. The return will then be transmitted back to the United States for final review and approval, and then given to clients. Assume the cost savings for the CPA firm are significant because of the lower salaries paid to chartered accountants in India, and the quality of work in India is as good as or better than that of U.S. tax accountants. Would you recommend that the firm outsource? Why or why not? Be sure to address ethical considerations with respect to the AICPA Code.


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