If a CPA becomes aware of a material error in the previous y…

If a CPA becomes aware of a material error in the previous year’s tax return (which affects the current year), discusses the error with the client and learns the client wants to wait and see if the error is caught by the IRS, the CPA should review which of the following AICPA standards in deciding how to proceed?

The earnings from a qualified state tuition program account…

The earnings from a qualified state tuition program account are deferred from taxation until they are used for qualified higher education expenses, at which time, the amount taken from the fund must be included in the gross income of the person who contributed to the account.