NAME: ________________________

Question Types


Start With


Question Limit

of 35 available terms

Upgrade to
remove ads

5 Written Questions

5 Matching Questions

  1. Fraud
  2. Securities Act of 1934
  3. US vs Arthur Andersen
  4. Laws for Auditor Liability
  5. Regulation S-X
  1. a accused of wholesale destruction of documents relating to the Enron Coporation collapse. Loss of case put Arthur Andersen out of business. Conviction was overturned by U.S. Supreme Court.
  2. b Common Law, Statutory Law
  3. c intentional concealment or misrepresentation of a material fact that causes damage to those deceived. Scienter must be proved.
  4. d Established the SEC and established requirement for annual audited financial statements
  5. e Eastablishes form, content, and requirements of financial statements

5 Multiple Choice Questions

  1. Unaudited statements; importance of engagement letters to establish nature of services provided, need to follow up on unusual findings even when not performing Audit.
  2. Duty - CPA accepted a duty of due professinal care.
    Breach of Duty - CPA breached contract.
    Losses - Suffered by Plaintiff.
    Causation - Losses were caused by CPA's performance.
  3. defendant would be required to pay a proportionate share of the damage, depending on the degree of fault determined by judge or jury
  4. Damages ought to be paid to those suffering losses caused by each party. Suffering party can recover full damages from any party. Usually % of fault is the percentage of damages each defendant pays but many cases Management is in bankruptcy so auditor is left to pay everything
  5. Lots of Fraud in early 2000's which caused the public to question the auditing profession.

5 True/False Questions

  1. Common LawLiability is based on federal securities laws or state stutes

          

  2. Breach of Contractwhen a person fails to perform a contractual duty

          

  3. PCAOBintentional concealment or misrepresentation of a material fact that causes damage to those deceived. Scienter must be proved.

          

  4. Continental Vending (Ciminal Liability)Damages ought to be paid to those suffering losses caused by each party. Suffering party can recover full damages from any party. Usually % of fault is the percentage of damages each defendant pays but many cases Management is in bankruptcy so auditor is left to pay everything

          

  5. Negligencefailure to use minimal care or operating with a "reckless diregard for the truth" or "reckless behavior"

          

Create Set