Question 1

Professionals are required to adhere to certain standards of performance within their profession.

Accepted Answer

A) True 
 B)False

Question 2

Under rules of professional conduct,committing a criminal act that reflects adversely on a person's "honesty" is professional misconduct.

Accepted Answer

A) True 
 B)False

Question 3

Digital Systems Corporation files a suit against Ethan,its former accountant,alleging constructive fraud. Digital Systems need not prove

Accepted Answer

A)  misstatement of a material fact.
B)  intent to deceive.
C)  justifiable reliance.
D)  an injury.E) C) and D)
F) None of the above

Question 4

Under the Sarbanes-Oxley Act,accountants need not retain working papers relating to an audit or review.

Accepted Answer

A) True 
 B)False

Question 5

Generally,an attorney is not liable to a non client unless the attorney has committed fraud or malicious conduct.

Accepted Answer

A) True 
 B)False

Question 6

A failure to follow generally accepted accounting principles and generally accepted auditing standards is proof of a lack of due diligence.

Accepted Answer

A) True 
 B)False

Question 7

An accountant normally will not be held liable to the client for incorrect judgment.

Accepted Answer

A) True 
 B)False

Question 8

In an opinion,an auditor can include a general statement disclaiming any liability for false or misleading financial statements.

Accepted Answer

A) True 
 B)False

Question 9

Nguyen Imports,Inc.,accuses Ogilvie,an accountant,of committing defalcation. This is

Accepted Answer

A)  embezzlement.
B)  general misconduct.
C)  professional negligence.
D)  misrepresentation of professional expertise.E) B) and D)
F) B) and C)

Question 10

Miriam is an accountant. Natalie is an attorney. Which professional is most restricted from disclosing her or his client's communication?

Accepted Answer

Most professionals are restrained by the...

Question 11

An accountant may be liable for a misstatement or omission of material fact in a registration statement.

Accepted Answer

A) True 
 B)False

Question 12

In all states,communications between an accountant and his or her client are privileged.

Accepted Answer

A) True 
 B)False

Exam 40: Liability of Accountants and Other Professionals

Digital Systems Corporation files a suit against Ethan,its former accountant,alleging constructive fraud. Digital Systems need not prove

Correct Answer
verified

Nguyen Imports,Inc.,accuses Ogilvie,an accountant,of committing defalcation. This is

Correct Answer
verified

A failure to follow generally accepted accounting principles and generally accepted auditing standards is proof of a lack of due diligence.

Correct Answer
verified

Professionals are required to adhere to certain standards of performance within their profession.

Correct Answer
verified

In an opinion,an auditor can include a general statement disclaiming any liability for false or misleading financial statements.

Correct Answer
verified

In all states,communications between an accountant and his or her client are privileged.

Correct Answer
verified

An accountant may be liable for a misstatement or omission of material fact in a registration statement.

Correct Answer
verified

Under rules of professional conduct,committing a criminal act that reflects adversely on a person's "honesty" is professional misconduct.

Correct Answer
verified

Miriam is an accountant. Natalie is an attorney. Which professional is most restricted from disclosing her or his client's communication?

Correct Answer
verified
Most professionals are restrained by the...
View Answer

An accountant normally will not be held liable to the client for incorrect judgment.

Correct Answer
verified

Generally,an attorney is not liable to a non client unless the attorney has committed fraud or malicious conduct.

Correct Answer
verified

Under the Sarbanes-Oxley Act,accountants need not retain working papers relating to an audit or review.

Correct Answer
verified

Exam 40: Liability of Accountants and Other Professionals

Digital Systems Corporation files a suit against Ethan,its former accountant,alleging constructive fraud. Digital Systems need not prove

Correct AnswerverifiedShow Answer

Nguyen Imports,Inc.,accuses Ogilvie,an accountant,of committing defalcation. This is

Correct AnswerverifiedShow Answer

A failure to follow generally accepted accounting principles and generally accepted auditing standards is proof of a lack of due diligence.

Correct AnswerverifiedShow Answer

Professionals are required to adhere to certain standards of performance within their profession.

Correct AnswerverifiedShow Answer

In an opinion,an auditor can include a general statement disclaiming any liability for false or misleading financial statements.

Correct AnswerverifiedShow Answer

In all states,communications between an accountant and his or her client are privileged.

Correct AnswerverifiedShow Answer

An accountant may be liable for a misstatement or omission of material fact in a registration statement.

Correct AnswerverifiedShow Answer

Under rules of professional conduct,committing a criminal act that reflects adversely on a person's "honesty" is professional misconduct.

Correct AnswerverifiedShow Answer

Miriam is an accountant. Natalie is an attorney. Which professional is most restricted from disclosing her or his client's communication?

Correct AnswerverifiedMost professionals are restrained by the...View AnswerShow Answer

An accountant normally will not be held liable to the client for incorrect judgment.

Correct AnswerverifiedShow Answer

Generally,an attorney is not liable to a non client unless the attorney has committed fraud or malicious conduct.

Correct AnswerverifiedShow Answer

Under the Sarbanes-Oxley Act,accountants need not retain working papers relating to an audit or review.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Most professionals are restrained by the...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified