Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
28.
(p. 263)
Under the _____, an accountant is liable to known third-party users of the accountant's
work product and also to those in the limited class whose reliance on the work the accountant
specifically foresaw.
29.
(p. 261)
Which of the following is true regarding states adhering to the privity or near privity rule
for third party liability of accountants?
30.
(p. 263)
In reference to the case of
Credit Alliance Corp. v. Arthur Anderson & Co.
, what did the
court rule regarding the effort to hold the defendant accounting firm liable on a third-party
reliance theory?
31.
(p. 263)
Which of the following is true regarding the number of states that have adopted the
Restatement Test of accountant liability for negligence to third-parties?
32.
(p. 261)
Which of the following is true regarding the liability of accountants under the law of
Canada?
33.
(p. 263)
What is the rationale behind the Restatement Test of accountant liability to third-
parties?
34.
(p. 264)
Which of the following is viewed as a middle ground test in regard to accounting liability
to third-party users?
35.
(p. 264)
Which of the following is true regarding states that have adopted the reasonably
foreseeable users test for accountant liability to third-parties?
36.
(p. 264)
Under which of the following tests is an accountant held liable to any third-party that was
or should have been foreseen as a possible user of the accountant's work product and that, in
fact, did use and rely upon that work product for a proper business purpose?
37.
(p. 264)
Which of the following standards is used in applying the reasonably foreseeable users
test regarding accountant liability to third-parties?
38.
(p. 266)
As set forth in the case in the text,
Bily
v. Arthur Young & Co.,
which of the following is
true regarding auditor liability to third parties under the Restatement rule?
39.
(p. 266)
Which of the following are various documents used and developed during an audit and
included notes, calculations, and memorandums?
40.
(p. 267)
Which of the following is true regarding the use of working papers in negligence cases
involving the accountant's work?
41.
(p. 267)
Which of the following does the Sarbanes-Oxley Act of 2002 require regarding working
papers?
42.
(p. 267)
Which of the following are penalties under the Sarbanes-Oxley Act for the willful violation
of the section requiring the retention of working papers?
43.
(p. 268)
Under which of the following are accountants civilly liable for misstatements and
omissions of material facts made in registration statements the SEC requires?
44.
(p. 268)
Which of the following is true regarding what a plaintiff must do in order to recover
damages under the Securities Act of 1933 after purchasing a security covered by a registration
statement containing false information or missing information?
45.
(p. 270)
For which of the following does the Securities Exchange Act impose liability?
46.
(p. 273)
Which of the following is true regarding any affirmative defenses available under Section
20(a) of the Securities Exchange Act?
47.
(p. 274)
Which of the following requires accountants to use adequate procedures so that they can
detect illegal acts committed by an audited company?
