CIVIL LIABILITY UNDER THE FEDERAL SECURITIES LAWS What are the four major sources of auditors’ legal liability? Compare and contrast traditional auditors’ legal responsibilities to clients and third-party users under common law. How has that law changed in recent years? What are the auditor’s possible defenses against lawsuits filed under the Securities Exchange Act of […]
Tag Archives: auditors
Which of the following best describes the reason why an independent auditor reports on financial statements?
MULTIPLE CHOICE QUESTIONS FROM CPA EXAMINATIONS 6-21 (OBJECTIVE 6-1) The following questions concern the reasons auditors do audits. Choose the best response. a. The major reason an independent auditor gathers audit evidence is to (1) form an opinion on the financial statements. (2) detect fraud. (3) evaluate management. (4) assess control risk. b. Which of […]
Distinguish between business failure and audit risk-Why is business failure a concern to auditors?
LEGAL LIABILITY CONCEPT CHECK 1. State several factors that have affected the incidence of lawsuits against CPAs in recent years. 2. Distinguish between business failure and audit risk. Why is business failure a concern to auditors? 3. Distinguish between fraud and constructive fraud
Which of the different three forms of external review from the chapter would you select and why?
Criminal Justice Question Examine the “three forms” of external review (Auditors & Inspector Generals, Blue Ribbon Commissions, and Private Consulting Groups) discussed in Chapter 7. Imagine you are a newly selected police chief for an agency that is facing several serious allegations of corruption and excessive force that led to the firing of the Chief. […]
How do the two companies utilize accounts receivable and inventory to generate sales?
Financial analysts ratio, investors, lenders, auditors, to help review and evaluate a company’s financial statements Regarding to activity ratios, do the two companies efficiently leverage their resources to generate sales revenue and cash? How do the two companies utilize accounts receivable and inventory to generate sales? C1. Read the notes to 10-K and figure out […]
What is the primary issue in the case-What is the author(s) trying to resolve?
Baker Hughes – Foreign Corrupt Practices Act Answer the following questions: 1. What is the primary issue in the case? What is the author(s) trying to resolve? 2. Should the Board of Directors and/or external auditors be actively involved in policing foreign corrupt practices or is this a management issue? 3. What were some of […]
What type of audit opinion did the external auditors give?
Topic: Financial Reporting Step ONE: Analysis of Annual Report Select a business from the provided list and analyze their latest annual report (either on the company website under investor relations or on finance.yahoo.com). Company Stock Symbol Amazon AMZN Apple AAPL Bank of America BAC Best Buy BBY Citigroup C Continental Airlines CAL Chipotle CMG Costco […]
Discuss the Relationship between earnings management and auditors
Topic: [Revision] Relationship between earnings management and auditors
Analyze the auditor’s responsibility to determine whether a company can continue as a going concern. From your analysis, propose at least two key factors auditors need to consider when determining an entity’s ability to continue as a going concern. Provide your rationale.
Read The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern from AICPA Based on the reading, analyze the auditor’s responsibility to determine whether a company can continue as a going concern. From your analysis, propose at least two key factors auditors need to consider when determining an entity’s ability to continue […]
