After agreeing to a financial planning engagement, your client, David, provides you with various documents, including his latest T4, investment statements, and a recent will. You notice significant discrepancies between David's stated income and the T4, and several assets listed in his will are not accounted for in his investment statements. What is your most appropriate next step in the data gathering phase?

Question: After agreeing to a financial planning engagement, your client, David, provides you with various documents, including his latest T4, investment statements, and a recent will. You notice significant discrepancies between David's stated income and the T4, and several assets listed in his will are not accounted for in his investment statements. What is your most appropriate next step in the data gathering phase?

Answer options:

• Proceed with developing the financial plan using the information provided, noting the discrepancies as assumptions. ✅ Inform David of the inconsistencies and request further clarification and supporting documentation to ensure accuracy.
• Adjust the stated income to match the T4 and omit the assets not found in the investment statements to avoid unreliable data.
• Focus only on the financial statements and disregard the will for the initial planning stages as it's a legal document.

Correct answer: Inform David of the inconsistencies and request further clarification and supporting documentation to ensure accuracy.

Explanation: Inconsistencies in client data must be addressed thoroughly to ensure the accuracy and reliability of the financial plan. Failing to clarify these discrepancies could lead to an inaccurate plan and inappropriate recommendations.