Question 1

A type two arrangement between an accountant and a client follows ordinary contract law principles.

Accepted Answer

A) True 
 B)False  False

Question 2

When an auditor performs a "qualified opinion" audit,they are certifying the results to the New York Stock Exchange under the Sarbanes-Oxley Act.

Accepted Answer

A) True 
 B)False  False

Question 3

State security statutes are commonly called ________ laws.

Accepted Answer

A) exchange 
B) third party 
C) common 
D) blue sky 
A) exchange 
B) third party 
C) common 
D) blue sky D

Question 4

GAAP was created by the FASB.

Accepted Answer

A) True 
 B)False

Question 5

Milton is offered a contract by Marcos and Co.to design condos for a fourteen-story structure.After the condos are completed,Marcos and Co.finds that instead of two cupboards,all the condos have only one cupboard.The error is traced back to Milton's faulty design.The error notwithstanding,the condos are still in absolutely usable condition.What is Milton's liability?

Accepted Answer

A) Milton has to reimburse the client for any extra money spent to fit in an extra cupboard. 
B) Milton has to pay Marcos and Co.the difference between the market value of the building as it stands and the market value of the intended structure. 
C) Milton has to pay the tenants the cost for fitting in an extra cupboard. 
D) Milton has to pay the state a fine for the inconvenience caused to the tenants. 
A) Milton has to reimburse the client for any extra money spent to fit in an extra cupboard. 
B) Milton has to pay Marcos and Co.the difference between the market value of the building as it stands and the market value of the intended structure. 
C) Milton has to pay the tenants the cost for fitting in an extra cupboard. 
D) Milton has to pay the state a fine for the inconvenience caused to the tenants.

Question 6

Which of the following statements is true about the "true locality" rule (TLR)?

Accepted Answer

A) The TLR requires the court to look at the standard of care used in the exact locality of the physician. 
B) The TLR permits the court to judge the actions of a local physician against those of a physician in a community of comparable size and socioeconomic character. 
C) The TLR ignores the socioeconomic character of the physician's home base and concentrates instead on the geographical limits of a state border. 
D) The TLR permits general practitioners to be judged by one criterion and specialists by another. 
A) The TLR requires the court to look at the standard of care used in the exact locality of the physician. 
B) The TLR permits the court to judge the actions of a local physician against those of a physician in a community of comparable size and socioeconomic character. 
C) The TLR ignores the socioeconomic character of the physician's home base and concentrates instead on the geographical limits of a state border. 
D) The TLR permits general practitioners to be judged by one criterion and specialists by another.

Question 7

Betty is unhappy with her physician,Todd,and wants a copy of her medical records to be able to consult another physician.Todd says the records are his work product and his property.Discuss the likely outcome of this dispute.

Accepted Answer

Under HIPAA,patients have the

Question 8

The Model Rules of Professional Conduct for attorneys was established by:

Accepted Answer

A) the American Bar Association. 
B) the National Conference of Commissioners on Uniform State Laws. 
C) the American Lawyers' Cooperative System. 
D) Congress. 
A) the American Bar Association. 
B) the National Conference of Commissioners on Uniform State Laws. 
C) the American Lawyers' Cooperative System. 
D) Congress.

Question 9

Certified public accountants are licensed after they pass a federal accountant's exam.

Accepted Answer

A) True 
 B)False

Question 10

Jose Alarcon is an attorney and founder of Alarcon & Associates,LLP.In preparing for a trial,he begins to collect evidence that he will use to represent his client at trial.This material is protected under the attorney-client privilege.

Accepted Answer

A) True 
 B)False

Question 11

Nadia,a licensed physician,operated on a patient at Saint Jerome's Regional Medical Center.Dr Nadia wore a SJRMC coat but did not have surgical privileges.St Jerome's could be liable on the basis of ostensible authority.

Accepted Answer

A) True 
 B)False

Question 12

Small Hospital uses independent physicians and allows them to wear a Small identification tag and issue orders to Small employees.Discuss the risk Small Hospital is taking.

Accepted Answer

Small may be granting ostensib

Question 13

Miranda,a student in Brad's business law class,asks a hypothetical question that is,in fact,based upon a current problem that her brother,Stan,is having.Brad gives an incorrect answer,and Stan suffers a loss when he acts according to the answer Miranda provided him.Brad has:

Accepted Answer

A) no duty of due care to Stan,but has to Miranda. 
B) no duty of due care to either Miranda or Stan. 
C) a duty of due care to both Stan and Miranda. 
D) a duty of due care to Stan,but not to Miranda. 
A) no duty of due care to Stan,but has to Miranda. 
B) no duty of due care to either Miranda or Stan. 
C) a duty of due care to both Stan and Miranda. 
D) a duty of due care to Stan,but not to Miranda.

Question 14

Kits wants to become a 'public accountant' for publicly traded companies but must first be a certified public accountant under SEC rules.

Accepted Answer

A) True 
 B)False

Question 15

Suppose Mary is a CPA and John hires her to create a financial audit for the purpose of securing a loan from BigBank,and Mary prepared the report with this purpose in mind.Suppose further that John defaults on his loan contract with BigBank.If BigBank decides to sue Mary,BigBank can argue that Mary owed it a duty of care.

Accepted Answer

A) True 
 B)False

Question 16

An attorney has a duty of ________ to protect the client and to make certain that the client receives advice and representation that is free of conflicting interests.

Accepted Answer

A) due care 
B) loyalty 
C) proximity 
D) good faith 
A) due care 
B) loyalty 
C) proximity 
D) good faith

Question 17

Dan is an accountant with Miller & Co.The financial condition of Miller & Co.is not so good,but Dan shows it to be very healthy while preparing its financial statement,knowing that Miller & Co.will show the statement to Chase in seeking financing for its new project.Dan will ________ personally liable to Chase if the new project goes bankrupt,and Chase will be able to recover against Miller based on the liability theory of ________.

Accepted Answer

A) not be;general consent 
B) be;attorney-client privilege 
C) not be;breach of contract 
D) be;actually named third parties 
A) not be;general consent 
B) be;attorney-client privilege 
C) not be;breach of contract 
D) be;actually named third parties

Question 18

Eva,a Mercy Hospital patient,received medication intended for another patient and,as a result,suffered severe complications.In a malpractice case against Mercy,regarding the administering of the wrong medication to Eva,most likely expert testimony:

Accepted Answer

A) will be required. 
B) will be required only if it happened once. 
C) will not be required only if the other patient was in a different area of the hospital. 
D) will not be required. 
A) will be required. 
B) will be required only if it happened once. 
C) will not be required only if the other patient was in a different area of the hospital. 
D) will not be required.

Question 19

Generally,if Jake is a certified financial advisor under SEC rules,he has a fiduciary duty to his client(s).

Accepted Answer

A) True 
 B)False

Question 20

Big Co.has made a variety of unsecured,undisclosed,large personal loans to top management officials.Belinda audits Big and discovers this problem.Discuss what type of audit opinion Belinda is likely to issue.

Accepted Answer

An adverse opinion w

Exam 32: Professional Liability

A type two arrangement between an accountant and a client follows ordinary contract law principles.

When an auditor performs a "qualified opinion" audit,they are certifying the results to the New York Stock Exchange under the Sarbanes-Oxley Act.

State security statutes are commonly called ________ laws.

GAAP was created by the FASB.

Which of the following statements is true about the "true locality" rule (TLR)?

Betty is unhappy with her physician,Todd,and wants a copy of her medical records to be able to consult another physician.Todd says the records are his work product and his property.Discuss the likely outcome of this dispute.

The Model Rules of Professional Conduct for attorneys was established by:

Certified public accountants are licensed after they pass a federal accountant's exam.

Jose Alarcon is an attorney and founder of Alarcon & Associates,LLP.In preparing for a trial,he begins to collect evidence that he will use to represent his client at trial.This material is protected under the attorney-client privilege.

Nadia,a licensed physician,operated on a patient at Saint Jerome's Regional Medical Center.Dr Nadia wore a SJRMC coat but did not have surgical privileges.St Jerome's could be liable on the basis of ostensible authority.

Small Hospital uses independent physicians and allows them to wear a Small identification tag and issue orders to Small employees.Discuss the risk Small Hospital is taking.

Miranda,a student in Brad's business law class,asks a hypothetical question that is,in fact,based upon a current problem that her brother,Stan,is having.Brad gives an incorrect answer,and Stan suffers a loss when he acts according to the answer Miranda provided him.Brad has:

Kits wants to become a 'public accountant' for publicly traded companies but must first be a certified public accountant under SEC rules.

An attorney has a duty of ________ to protect the client and to make certain that the client receives advice and representation that is free of conflicting interests.

Eva,a Mercy Hospital patient,received medication intended for another patient and,as a result,suffered severe complications.In a malpractice case against Mercy,regarding the administering of the wrong medication to Eva,most likely expert testimony:

Generally,if Jake is a certified financial advisor under SEC rules,he has a fiduciary duty to his client(s).

Big Co.has made a variety of unsecured,undisclosed,large personal loans to top management officials.Belinda audits Big and discovers this problem.Discuss what type of audit opinion Belinda is likely to issue.

Ethics,social Responsibility,and the Law

Sources of the Law

The Judicial Process and Cyber-Procedure

Alternative Dispute Resolution and Cyber-Adr

Criminal Law and Cybercrimes

Tort Law and Cybertorts

The Essentials of Contract Law

Offer,acceptance,and Mutual Assent

Consideration and Cyber-Payments

Capacity and Legality: the Final Elements

Written Contracts and Cyber-Commerce

Third Parties,discharge,and Remedies

Sales Contracts: Formation,title,and Risk of Loss

Sales Contracts: Rights,duties,breach,and Warranties

Product Liability and Consumer Protection

The Nature of Negotiable Instruments

Holders in Due Course,defenses,and Liabilities

Bank-Depositor Relationships and Cyber-Banking

Insurance

Mortgages, land Contracts, and the 21st-Century Financial Crisis

Bankruptcy Law: in Theory, in History, and in Practice

Agency Law

Employment Law

Labor Law

The Business Entity: an Introduction

The Corporate Entity

Managing the Corporate Entity

Government Regulation of the Corporate Entity

Personal Property and Bailments

Real Property and Landlord and Tenant Law

Wills, advanced Directives, and Trusts

Science, technology, and Law in the 21st Century

International Law and the New World Order

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