25170835
Beschreibung
Quiz von Kayla Harbaugh, aktualisiert more than 1 year ago
|
Erstellt von Kayla Harbaugh
vor mehr als 4 Jahre
|
|
Frage 1
Frage
Which of the following factors is not a reason that audit firms experience litigation for business failures, rather than audit failures?
Antworten
-
Contingent-fee compensation for audit firms
-
Joint and several liability statutes
-
Class action lawsuits
-
A misunderstanding by some users that an unqualified audit opinion represents an insurance policy against investment losses.
Frage 2
Frage
The shareholders of a bank sue Karen Frank, CPA, for malpractice due to an audit failure that preceded the bank's financial failure. The jury determines that Frank is 60% at fault and that management is 40% at fault. The bank has no financial resources, nor does its management. Under joint and several liability, what is the likely percentage of damages that Frank will ensue?
Antworten
-
100%
-
50%
-
40%
-
None of these.
Frage 3
Frage
Which of the following statements is false?
Antworten
-
Negligence is the failure to exercise reasonable care, thereby causing harm to another person or to property.
-
Gross negligence is operating with a reckless disregard for the truth, or the failure to use even minimal care.
-
Fraud is an intentional concealment or misrepresentation of a material fact with the intent to deceive another person, causing damage to the deceived person.
-
Breach of contract occurs when a person competently performs a contractual duty.
Frage 4
Frage
The remedies for breach of contract include which of the following?
Antworten
-
Requiring specific performance of the contract agreement.
-
Granting an injunction to prohibit the auditor from doing certain acts, such as disclosing confidential information.
-
Providing for recovery of amounts lost as a result of the breach.
-
All of these.
Frage 5
Frage
Litigation costs are the largest single cost faced by audit firms.
Antworten
- True
- False
Frage 6
Frage
The expectations gap includes a misperception by shareholders that they are entitled to recover losses on investments for which the auditor provided an unqualified opinion on the financial statements.
Antworten
- True
- False
Frage 7
Frage
The three laws most relevant to auditor liability include common law, contract law, and statutory law.
Antworten
- True
- False
Frage 8
Frage
Negligence occurs when a person fails to perform a contractual duty.
Antworten
- True
- False
Frage 9
Frage
Examples of breach of contract include violating client confidentiality, failing to provide the audit report on time, and failing to discover material error or material employee fraud.
Antworten
- True
- False
Frage 10
Frage
To win a claim against the auditor, third parties suing under common law must generally prove that they suffered a loss, that the loss was due to lack of reliance on misleading financial statements, and that the auditor knowingly participated in the financial misrepresentation.
Antworten
- True
- False
Möchten Sie mit GoConqr kostenlos Ihre eigenen Quiz erstellen? eigenen Mehr erfahren.