ACCA Advanced Taxation (ATX) Practice Exam

What is the required action for obtaining a new tax advisory position?

1. Gathering client financial goals

2. Issuing engagement letters without any check

3. Contacting only old advisers

4. Shunning ethical standards to proceed

The correct answer is: Gathering client financial goals

To obtain a new tax advisory position, gathering client financial goals is essential. This action involves understanding the client's specific financial objectives, needs, and circumstances, which is fundamental to providing tailored tax advice. By collecting this information, a tax advisor can develop strategies that align with the client’s desires and ensure that the advice given is both relevant and effective. This step not only establishes a relationship of trust between the advisor and the client but also demonstrates professionalism and a client-centered approach. It reflects an understanding that every client’s financial situation is unique and requires personalized strategies. This groundwork is crucial for successful tax planning and compliance. Other options, such as issuing engagement letters without checks, contacting only old advisers, or shunning ethical standards, wouldn't support a successful advisory position. Engaging without due diligence on engagement letters implies a lack of care for client relationships and legal obligations. Solely relying on past advisers overlooks the potential for new insights and best practices. Finally, disregarding ethical standards would severely undermine credibility and trustworthiness, both of which are essential in the field of tax advisory.