CPA Legal

The client owns the working papers but, in the absence of the accountant's consent, may not disclose them without a court order.

The client owns the working papers but the accountant has custody of them until the accountant's bill is paid in full.

The accountant owns the working papers but generally may not disclose them without the client's consent or a court order.

The accountant owns the working papers and generally may disclose them as the accountant sees fit.

The CPA is only liable to those third parties who are in privity of contract with the CPA.

The CPA is liable to anyone in a class of third parties whom the CPA knows will rely on the opinion.

The CPA is only liable to the client.

The CPA is liable to all possible foreseeable users of the CPA's opinion.

Warn a client of known internal control weaknesses.

Detect all of a client's fraudulent activities.

Include a negligence disclaimer in the client engagement letter.

Warn a client's customers of embezzlement by the client's employees.

A disclaimer contained in the engagement letter.

Contributory negligence on the part of the client.

Lack of scienter.

Lack of privity.

Turned over pursuant to a valid federal court subpoena.

Turned over to any government agency that requests them.

Transferred to another accountant purchasing the CPA's practice even if the client hasn't given permission.

Transferred permanently to the client if demanded.

The CPA probably is liable to the client even if the client was aware of the fraud and did not rely on the opinion.

The CPA is liable only to known users of the financial statements.

The CPA is liable only to third parties in privity of contract with the CPA.

The CPA probably is liable to any person who suffered a loss as a result of the fraud.

Cannot sue the accounting firm because of the statute of limitations.

Can sue the accounting firm for the loss of the loan because of the rule of privilege.

Can sue the accounting firm for the loss of the loan because of negligence.

Cannot sue the accounting firm because there was no privity of contact.

Discuss only the items that have a direct connection to those items the CPA worked on for the client in the past.

Cite the privileged communications aspect of being a CPA.

Discuss the entire conversation including the illegal acts.

Take the Fifth Amendment and not discuss the meeting.

Yes, because Lasco is required to direct prospective auditors to contact Spinner to make arrangements to view the working papers in Spinner's office.

No, because Lasco has a legitimate business reason for demanding that Spinner surrender the working papers.

No, because it was Lasco's financial statements that were audited.

Yes, because Spinner is the owner of the working papers.

A review of the CPA's professional practice by a state CPA society.

An inquiry from the professional ethics division of the AICPA.

A letter to the client from the IRS.

A court-ordered subpoena or summons.

Any foreseen or known third party who relied on the report.

Only those third parties in privity of contract with the accountant.

All third parties who relied on the report and sustained injury.

Any third party whose reliance on the report was reasonably foreseeable.

The CPA will not be liable if care and skill of an ordinary reasonable person was exercised.

The CPA's adherence to generally accepted auditing standards (GAAS) may prevent liability.

The CPA is liable for any embezzlement losses that occurred before the scheme should have been detected.

The CPA may be liable for punitive damages if due care was not exercised.

An action for common law fraud.

An action for common law breach of contract.

An action brought under Section 11 of the Securities Act of 1933.

An action brought under Rule 10b-5 of the Securities Exchange Act of 1934.

Neither the accountant nor the client.

The accountant and the client jointly.

The accountant only.

The client only.

The CPA violated generally accepted auditing standards.

The CPA acted with scienter.

The plaintiff relied on the financial statements audited by the CPA.

There was a material misrepresentation of fact in the financial statements audited by the CPA.

A CPA's work is not guaranteed to be accurate even though the CPA acted in a reasonably competent and professional manner.

A CPA's liability for fraud extends only to the client and no further.

A CPA's liability for negligence extends only to the client and no further.

A CPA is negligent for exercising only that degree of care a reasonably competent CPA would exercise under the circumstances.

Working papers may not be disclosed to any third parties without the client's permission.

.Working papers may not be turned over to a CPA quality review team without the client's permission.

Working papers may not be transferred to another accountant without the client's permission.

Working papers may not be disclosed under a federal court subpoena without the client's permission.

The accuracy of the CPA's report was not guaranteed.

The client was comparatively negligent.

The CPA's negligence was not the proximate cause of the client's losses.

The client was contributorily negligent.

Breach of the accountant's duty of care and loss.

Willful misrepresentation and breach of the accountant's duty of care.

Freedom from contributory negligence and privity.

Scienter and a violation of GAAP.

It applies to banks only.

It requires private citizens to file reports in some cases.

It generally requires the filing of a currency transaction report for any deposit, withdrawal, or exchange of currency of $5,000 or more.

It generally requires records to be kept for three years.

30 days.

15 days.

10 days.

20 days.

The bank must obtain identification information from the buyer but need not retain the information if the buyer is a customer.

The bank must obtain and retain any required identification for five years.

The bank has no obligations with respect to the transaction because it does not exceed $10,000.

The bank must report the transaction on a currency transaction report form.

A payroll customer who regularly withdraws more than $10,000 in order to pay its U.S. employees.

A bank.

A state.

car dealer.

.File a suspicious transaction report.

None of the answer choices are correct.

Inform the customer of the unusual transaction.

.Inform its board of directors if it files a suspicious activity report.

.Currency Transaction Report.

.Report of International Transportation of Currency or Monetary Instruments.

Suspicious Activity Report.

.Report of Sale of Monetary Instrument.