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Chapter 4 Multiple Choice

Terms in this set (12)

state law
In connection with a lawsuit, a third party attempts to gain access to the auditor's working papers. The client's defense of
privileged communication will be successful only to the extent it is protected by the:
ordinary negligence or gross neglience
under common law, auditors are generally liable to the client for
none of the above
under the 1934 SEC act auditors are liable to ordinary trade creditors for
gross negligence may be viewed as failure to exercise due professional care
valid statements concerning gross negligence include all but which one of the following
they would be liable for all losses attributable to their negligence
As a consequence of their failure to adhere to generally accepted auditing standards in the course of their audit of Frost Corp., Jones & Telling, CPAs, did not detect the embezzlement of a material amount of money by the company's controller. As a matter of common law, to what extent would the CPAs be liable to Frost Corp. for losses attributable to the theft?
all companies under the jurisdiction of the SEC
the securities act of 1934 applies to
when such failure clearly results from failure to comply with GAAP
according to statements on auditing standards, the auditors responsibility for failure to detect fraud arises
to all cpas in public practice
according to court decision, the GAAP established by the AICPA apply
unaudited financial statements
the 1136 tenants association was chiefly important because of its emphasis upon the legal liability of the CPA when associated with
oral arrangements are necessary for supplementing items set forth in the engagement letter
lessons to be learned from the 1136 tenants corporation case include all but which of the following
subject to criminal as well as civil liability
in the even that a CPA issues an unqualified audit report on financial statements which he or she knows to be misleading, that cpas is
the prospective client is in a new much publicized industry offering the possibility of rapid growth but is under financed and possible on the brink of bankruptcy
for a CPA considering the acceptance of new clients, which of the following characteristics would be a deterrent
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