Question 1

When an accountant is hired to perform a task, the contract the accountant enters into with a client is referred to as a[n] ________.

Accepted Answer

A)   Accounting contract
B)   Accounting and auditing agreement
C)   Engagement letter
D)   Procurement letter
E)   Performance letterF) A) and B)
G) B) and D)

Question 2

Plaintiffs have been successful in recent years bringing fraud suits against accountants under the Racketeer Influenced and Corrupt Organizations Act.

Accepted Answer

A) True 
 B)False

Question 3

[Prenuptial Agreement] Norah performed accounting services for Joel's used car business. She had a contract with Joel to the effect that she would audit his books and financial statements for his own use, not for the purpose of obtaining loans. In auditing Joel's business, she developed various notes, calculations, memorandums, and other papers. Gloria, Joel's fiancé, approached Norah to inquire about Joel's business. Gloria and Norah had been friends for many years. Norah allowed Gloria to look at the various notes, calculations, and other papers resulting from her review of Joel's financial statements and other records. Gloria told Norah that she really needed to investigate Joel because they were thinking of getting married, and she believed he had a legal obligation to disclose the information to her because of negotiations involving a prenuptial agreement. Norah agreed and proceeded to discuss Joel's finances with Gloria, revealing all the information that Joel had disclosed to her. Gloria broke up with Joel, telling him that after what she discovered from Norah, she was concerned about Joel's finances. Joel was very angry with Norah and told her that she was unethical and had violated the accountant-client privilege.
-The notes, calculations, memorandums, and similar documents that Norah developed in her review of Joel's financial statements are called which of the following?

Accepted Answer

A)   Working papers.
B)   Consultation papers.
C)   Computation papers.
D)   Analysis papers.
E)   Review papers.F) A) and D)
G) C) and D)

Question 4

Which of the following was the result on appeal in the Case Opener involving the alleged breach of an oral contract based on the plaintiff lawyer loaning a corporate client funds and the client later reneging on a promise, made in gratitude, to give the lawyer three percent of the company's stock?

Accepted Answer

A)   That the promise to transfer the stock flowed from the loan transaction and was enforceable by the plaintiff.
B)   That the promise was unenforceable because lawyers may not loan clients money.
C)   That the promise was enforceable only if the total the plaintiff received in funds did not violate state usury laws involving maximum interest rates.
D)   That the promise was not enforceable because it was a gift.
E)   That the promise was enforceable as a gift.F) None of the above
G) All of the above

Question 5

Discuss the defenses available to an accountant charged with negligence.

Accepted Answer

Defenses to an accountant charged with n...

Question 6

The Financial Accounting Standards Board established:

Accepted Answer

A)   The generally accepted liability insurance agreement
B)   The auditing perfections standards
C)   The generally accepted accounting principles
D)   The certified public accounting standards
E)   The requirements for licensing accountantsF) A) and B)
G) C) and D)

Question 7

State protection of an accountant-client privilege will always apply when a federal law is at issue because each state sets their own standards for accountant-client privilege.

Accepted Answer

A) True 
 B)False

Exam 11: Liability of Accountants and Other Professionals

Discuss the defenses available to an accountant charged with negligence.

Correct Answer
verified
Defenses to an accountant charged with n...
View Answer

State protection of an accountant-client privilege will always apply when a federal law is at issue because each state sets their own standards for accountant-client privilege.

Correct Answer
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The Financial Accounting Standards Board established:

Correct Answer
verified

Plaintiffs have been successful in recent years bringing fraud suits against accountants under the Racketeer Influenced and Corrupt Organizations Act.

Correct Answer
verified

Which of the following was the result on appeal in the Case Opener involving the alleged breach of an oral contract based on the plaintiff lawyer loaning a corporate client funds and the client later reneging on a promise, made in gratitude, to give the lawyer three percent of the company's stock?

Correct Answer
verified

When an accountant is hired to perform a task, the contract the accountant enters into with a client is referred to as a[n] ________.

Correct Answer
verified

Correct Answer
verified

Exam 11: Liability of Accountants and Other Professionals

Discuss the defenses available to an accountant charged with negligence.

Correct AnswerverifiedDefenses to an accountant charged with n...View AnswerShow Answer

State protection of an accountant-client privilege will always apply when a federal law is at issue because each state sets their own standards for accountant-client privilege.

Correct AnswerverifiedShow Answer

The Financial Accounting Standards Board established:

Correct AnswerverifiedShow Answer

Plaintiffs have been successful in recent years bringing fraud suits against accountants under the Racketeer Influenced and Corrupt Organizations Act.

Correct AnswerverifiedShow Answer

Which of the following was the result on appeal in the Case Opener involving the alleged breach of an oral contract based on the plaintiff lawyer loaning a corporate client funds and the client later reneging on a promise, made in gratitude, to give the lawyer three percent of the company's stock?

Correct AnswerverifiedShow Answer

When an accountant is hired to perform a task, the contract the accountant enters into with a client is referred to as a[n] ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
Defenses to an accountant charged with n...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified