5 Written questions
5 Matching questions
- Securities Act of 1933
- Restatement of torts approach
- Breach of Contract
- Causes of Legal Action
- Contingent-fee cases
- a if lose case client owes lawyer nothing, if win lawer get a % of winnings.
- b Breach of Contract, Negligence
- c requires audited financial statements in registration statements of initial public offerings
- d when a person fails to perform a contractual duty
- e Auditors know audited financial statements were to be used for a particular purpose, but auditors did not necessarily know the specific user
5 Multiple choice questions
- Sue those who can pay. Want the firm to settle to make a quick buck even if firm did nothing wrong.
- Indirect: can have future impact,
Auditor must follow up to determine if material
If material - Report (to audit committee), make sure adequately disclosed in financial statements
If not material, inform appropriate level of management
- Common Law, Statutory Law
- Established the SEC and established requirement for annual audited financial statements
- If Public company, auditor must inform Board of Directors for illegal acts by client.
BOD has one day to inform SEC
If don't; auditor has one day to inform SEC, or resign from audit and inform SEC,
SEC may impose fines on auditor if not informed of illegal act
5 True/False questions
US vs Arthur Andersen → designed to prevent multiple suits that might result in inconsistent judgements. Lawyers try to identify every potential member of the class.
Litigation Perspective → Eastablishes form, content, and requirements of financial statements
Securities Exchange Commission → Established the SEC and established requirement for annual audited financial statements
Statutory Law → liability concepts are developed through court decisions based on negligence, gross negligence, fraud, or breach of contract
Controlling Litigation → liability concepts are developed through court decisions based on negligence, gross negligence, fraud, or breach of contract