Mike is a CPA. For the past 5 years, the information that Anne provided Mike to prepare her return included a Schedule K-1 from a partnership showing significant income. However, Mike did not see a Schedule K-1 from the partnership among the information Anne provided to him this year. What does due diligence require Mike to do?

According to the given scenario, Mike needs to ask Anne that she did not provide him with a Schedule K-1. Because the law does not allow Mike to rely on the inadequate information that is provided to him nor he should make a list on his own with the help of the estimated amount. Therefore, a CPA must have first-hand information from the concerned person before performing any task.

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