Exam 6: Legal, Regulatory, and Professional Obligations of Auditors

A "particularized" allegation requires establishing:

Which of the following would eliminate the ability of a plaintiff to prevail under Rule 10b-5?

Which of the following are an affirmative defense for those accused of violating the FCPA?

In the U.S., if the auditor can demonstrate having performed services with the same degree of skill and judgment possessed by others in the profession, it can be said to have exercised:

Under the rules of the Sarbanes-Oxley Act of 2002 (SOX), who must certify the public reports filed with the SEC?

A payment made to induce a foreign government official to do something they might not otherwise be required to do is a(n):

In FCPA matters, the following would be considered effective compliance program policies except:

The Securities and Exchange Act of 1934:

In chapter 4 we discussed the rules for independence. Auditor violations of independence can cause legal liability issues for the individual auditor and, perhaps, the audit firm. Describe situations where auditor legal liability has occurred as a result of independence violations and identify other situations addressed in the AICPA Code that could lead to legal liability.

Rule 10b-5 of the Securities Exchange Act of 1934 makes it unlawful for a CPA to engage in each of the following activities except:

Under the Securities Act of 1933 and the Securities and Exchange Act of 1934, accountants may be subject to criminal penalties for:

How long do management and the audit committee have to act if the independent auditor reports possible illegal acts to them?

In the case of Reisman v. KPMG Peat Marwick LLP, the auditors were found guilty of fraud because

In establishing that the third party relied on the financial statements, one factor that works against plaintiffs' establishing such reliance is:

Distinguish between an auditor's legal liability under common law and statutory law.

The Rosenblum case ruling was of concern to the accounting profession because it implied that:

The Ultramares v. Touche case of 1933 held that a cause of action based on negligence could not be maintained by a third party who was not in contractual privity; however, it did leave open the possibility that:

The unique aspect of auditors' legal liability in the Rosenblum v. Adler ruling is:

Explain the provisions of section 302 of the Sarbanes-Oxley Act including obligations of officers; nature and scope of assertions; accounting requirements; and legal liability of officers.

In what situation can an individual be held liable for harm no what their mental state was?