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48.
(p. 274)
Which of the following is false regarding the Private Securities Litigation Reform Act?
49.
(p. 274)
Which of the following was created by the Sarbanes-Oxley Act to obtain greater
government oversight of public accounting firms?
50.
(p. 275)
Which of the following may be held liable in a malpractice action?
51.
(p. 260)
The contract that Paul and Teresa entered into setting the scope of Paul's duties is
referred to as a[n] ___________.
52.
(p. 260)
Assuming that Teresa can establish that Paul failed to meet his contractual obligations,
which of the following would be available to her?
53.
(p. 260)
If Paul engaged in ____________ breach, he is not entitled to compensation for work
completed.
54.
(p. 260)
If Paul ______________ performed on the contract, he may be entitled to complete
compensation minus the amount of damages caused by the breach.
55.
(p. 266)
Under the Restatement Test, as discussed in the case in the text,
Bily
v. Arthur Young &
Co.
, which of the following is true regarding whether XYZ Bank can recover against Selena based
upon the loan to Bob?
56.
(p. 266)
Under the Restatement Test, as discussed in the case in the text,
Bily v. Arthur Young &
Co.
, which of the following is true regarding the action brought by ABC Bank against Selena
based upon the loss of funds on Carl's loan?
57.
(p. 266)
Under the Restatement Test, as discussed in the case in the text,
Bily v. Arthur Young &
Co.
, which of the following is true regarding the effort by XYZ Bank to recover against Selena
based upon Alice's default?
58.
(p. 267)
What are the various documents including, notes, calculations, and memorandums that
Rhonda developed in her review of Greg's financial statements called?
59.
(p. 260)
What is Rhonda's contract with Greg to do audit work for him called?
60.
(p. 268)
Which of the following is accurate regarding Greg's assertion that Rhonda violated the
accountant-client privilege?
11-55
61.
(p. 268)
Assuming that Rhonda discussed with Candace confidential communications that she
had with Greg, which of the following is true regarding the ethical nature of that communication?
62.
(p. 271)
What must be proven in order to recover damages under Section 10(b) of the Securities
Exchange Act of 1934 and the corresponding SEC Rule 10b-5?
63.
(p. 259)
Discuss the defenses available to an accountant charged with negligence.
64.
(p. 260)
When can an accountant be held liable to his or her client for fraud?
65.
(p. 274-275)
The Sarbanes-Oxley Act prohibits registered public accounting firms from
engaging in non-auditing acts for their auditing clients. List any six such non-auditing acts
currently prohibited.
66.
(p. 259)
Andy, a newly licensed certified public accountant, performed an audit for ABC
Corporation. Shortly after the audit, a number of company officials were indicted for fraud. Andy
tells his boss, Shirley, that he is not concerned because he had no duty under GAAS or GAAP to
detect fraud and that so long as those obligations were met, he had no duty to do more. He says
that auditors are not expected to have perfect judgment. Set forth what the initials GAAS and
GAAP represent. Additionally, discuss whether Andy is correct on the following issues, and why
or why not:
67.
(p. 273)
Which of the following must be shown in order to establish a violation of Section 20(a) of
the Securities Exchange Act?
