Exam 51: Accountants' Duties and Liability

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The legal theory that holds accountants liable to any member of a limited class of intended users for whose benefit the accountant has been employed is the Section 552 of the Restatement (Second)of Torts.

(True/False)

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Question 41

Only purchasers and sellers of securities can sue under Section 10(b)and Rule 10b-5.

(True/False)

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(70)

Question 42

Which of the following is a necessity to bring a private civil action against a violator of RICO based on securities fraud?

(Multiple Choice)

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Question 43

What prohibition does the Sarbanes-Oxley Act impose on an accounting firm providing audit and nonaudit services to the same company?

(Essay)

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Question 44

Federal law allows for discovery of an accountant's work papers in a federal case against the accountant's client.

(True/False)

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Question 45

Holly Lane is an accountant with Mildred & Lane Co.and she has recently been asked to visit Maine Manufacturers to survey their financial records, assess their compliance with federal and state laws, and provide an opinion reflecting the state of the company's financial records.Holly's assessment of the financial records of Maine Manufacturers is called a(n)________.

(Multiple Choice)

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Question 46

Which of the following is true of Section 10A of the Securities Exchange Act of 1934?

(Multiple Choice)

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Question 47

Which of the following opinions is necessary for a company to avoid unfavorable repercussions on the company?

(Multiple Choice)

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Question 48

All members of the Public Company Accounting Oversight Board (PCAOB)have to be CPAs.

(True/False)

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Question 49

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

(Multiple Choice)

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Question 50

A third party can bring a tort action against an accountant in case of constructive fraud.

(True/False)

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Question 51

The Sarbanes-Oxley Act of 2002 prohibits the employment of an accountant by a previous audit client for five years after the first appointment.

(True/False)

4.9/5

(77)

Question 52

A verification of a company's books and records pursuant to federal securities laws, state laws, and stock exchange rules that must be performed by an independent CPA is known as a(n)________.

(Multiple Choice)

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(75)

Question 53

If an auditor makes a disclaimer of opinion, this means that the auditor is ________.

(Multiple Choice)

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Question 54

Constructive fraud is defined as intentional misrepresentation or omission of a material fact that is relied on by the client and causes the client damage.

(True/False)

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Question 55

Violations of GAAPs or GAASs, or IFRSs, if applicable, are prima facie evidence of negligence in any court action.

(True/False)

4.9/5

(77)

Question 56

Most accounting firms in the U.S.operate as limited liability partnerships (LLPs).

(True/False)

4.9/5

(85)

Question 57

The Securities Exchange Commission has oversight and enforcement authority over the Public Company Accounting Oversight Board.

(True/False)

4.8/5

(56)

Question 58

Which of the following legislations can a state adopt in determining whether an accountant is liable in negligence to third parties?

(Multiple Choice)

5.0/5

(78)

Question 59

Which of the following statements is true of the GAAP?

(Multiple Choice)

4.9/5

(73)

Question 60

Showing 41 - 60 of 83

Exam 51: Accountants' Duties and Liability

The legal theory that holds accountants liable to any member of a limited class of intended users for whose benefit the accountant has been employed is the Section 552 of the Restatement (Second)of Torts.

Only purchasers and sellers of securities can sue under Section 10(b)and Rule 10b-5.

Which of the following is a necessity to bring a private civil action against a violator of RICO based on securities fraud?

What prohibition does the Sarbanes-Oxley Act impose on an accounting firm providing audit and nonaudit services to the same company?

Federal law allows for discovery of an accountant's work papers in a federal case against the accountant's client.

Which of the following is true of Section 10A of the Securities Exchange Act of 1934?

Which of the following opinions is necessary for a company to avoid unfavorable repercussions on the company?

All members of the Public Company Accounting Oversight Board (PCAOB)have to be CPAs.

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

A third party can bring a tort action against an accountant in case of constructive fraud.

The Sarbanes-Oxley Act of 2002 prohibits the employment of an accountant by a previous audit client for five years after the first appointment.

A verification of a company's books and records pursuant to federal securities laws, state laws, and stock exchange rules that must be performed by an independent CPA is known as a(n)________.

If an auditor makes a disclaimer of opinion, this means that the auditor is ________.

Constructive fraud is defined as intentional misrepresentation or omission of a material fact that is relied on by the client and causes the client damage.

Violations of GAAPs or GAASs, or IFRSs, if applicable, are prima facie evidence of negligence in any court action.

Most accounting firms in the U.S.operate as limited liability partnerships (LLPs).

The Securities Exchange Commission has oversight and enforcement authority over the Public Company Accounting Oversight Board.

Which of the following legislations can a state adopt in determining whether an accountant is liable in negligence to third parties?

Which of the following statements is true of the GAAP?

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Wills Trusts and Estates

Family Law

International and World Trade Law

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