Exam 40: Accountants' Duties and Liability

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Which of the following rules provides that an accountant is liable only for negligence to third parties who are members of a limited class of intended users of the client's financial statements?

(Multiple Choice)

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Question 21

Discuss an accountant's liability to third parties in fraud cases with an example.

(Essay)

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Question 22

Under what circumstances are Racketeer Influenced and Corrupt Organization Act (RICO)actions filed?

(Essay)

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Question 23

Compliance with GAASs automatically relieves auditors of liability to clients in negligence cases.

(True/False)

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Question 24

The foreseeability standard holds accountants liable to third parties only if the accountant was aware of the identity of the third party.

(True/False)

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Question 25

________ specify the methods and procedures that are to be used by public accountants when conducting external audits of company financial statements.

(Multiple Choice)

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Question 26

Which of the following is true of the Public Company Accounting Oversight Board (PCAOB)?

(Multiple Choice)

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Question 27

Emerold LLP is an accounting firm.It has been hired to audit Blue Link,Inc.'s financial statements.The auditors of Emerold find that financial statements fairly represent the company's financial position,but the accounting standards do not follow GAAPs.Which of the following would the auditors provide?

(Multiple Choice)

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Question 28

An auditor's opinion that a company's financial statements fairly represent the company's financial position,the results of its operations,and the change in cash flows for the period under audit,in conformity with generally accepted accounting principles is referred to as a(n)________.

(Multiple Choice)

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Question 29

The Securities Act of 1933 requires that before a corporation or another business sells securities to the public,the issuer must file a registration statement with the Securities and Exchange Commission (SEC).

(True/False)

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Question 30

Which of the following statements is true of accountants' liability to clients in fraud cases?

(Multiple Choice)

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Question 31

Which of the following statements is true of a company that receives an opinion other than an unqualified opinion after an audit?

(Multiple Choice)

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Question 32

Which of the following statements is true of accountants' work papers?

(Multiple Choice)

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Question 33

The accountant-client privilege is a law that provides that ________.

(Multiple Choice)

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Question 34

Which of the following statements is true of Rule 10b-5?

(Multiple Choice)

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Question 35

Which of the following is true about the auditor verifying a corporation's financial statements?

(Multiple Choice)

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Question 36

The Sarbanes-Oxley Act allows for a registered public accounting firm to simultaneously provide audit and certain nonaudit services to a public company.

(True/False)

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Question 37

A certified public accounting firm may provide tax services to audit clients if such tax services are preapproved by the audit committee of the client.

(True/False)

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Question 38

How is an accountant's liability to a client determined in a negligence suit?

(Essay)

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Question 39

Which of the following statements is characteristic of the Sarbanes-Oxley Act?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 100

Exam 40: Accountants' Duties and Liability

Which of the following rules provides that an accountant is liable only for negligence to third parties who are members of a limited class of intended users of the client's financial statements?

Discuss an accountant's liability to third parties in fraud cases with an example.

Under what circumstances are Racketeer Influenced and Corrupt Organization Act (RICO)actions filed?

Compliance with GAASs automatically relieves auditors of liability to clients in negligence cases.

The foreseeability standard holds accountants liable to third parties only if the accountant was aware of the identity of the third party.

________ specify the methods and procedures that are to be used by public accountants when conducting external audits of company financial statements.

Which of the following is true of the Public Company Accounting Oversight Board (PCAOB)?

An auditor's opinion that a company's financial statements fairly represent the company's financial position,the results of its operations,and the change in cash flows for the period under audit,in conformity with generally accepted accounting principles is referred to as a(n)________.

The Securities Act of 1933 requires that before a corporation or another business sells securities to the public,the issuer must file a registration statement with the Securities and Exchange Commission (SEC).

Which of the following statements is true of accountants' liability to clients in fraud cases?

Which of the following statements is true of a company that receives an opinion other than an unqualified opinion after an audit?

Which of the following statements is true of accountants' work papers?

The accountant-client privilege is a law that provides that ________.

Which of the following statements is true of Rule 10b-5?

Which of the following is true about the auditor verifying a corporation's financial statements?

The Sarbanes-Oxley Act allows for a registered public accounting firm to simultaneously provide audit and certain nonaudit services to a public company.

A certified public accounting firm may provide tax services to audit clients if such tax services are preapproved by the audit committee of the client.

How is an accountant's liability to a client determined in a negligence suit?

Which of the following statements is characteristic of the Sarbanes-Oxley Act?

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Genuineness of Assent and Statute of Frauds

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Breach of Contract and Remedies

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Title to Goods and Risk of Loss

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Holder in Due Course and Liability of Parties

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