help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Pitt Community College ACC 269 Assignment #2: 1)An audit failure takes place when an audit firm issues an inaccurate audit opinion and fails to comply with auditing standards

Pitt Community College ACC 269 Assignment #2: 1)An audit failure takes place when an audit firm issues an inaccurate audit opinion and fails to comply with auditing standards

Accounting

Pitt Community College

ACC 269

Assignment #2:

1)An audit failure takes place when an audit firm issues an inaccurate audit opinion and fails to comply with auditing standards.

 

  1. In light of the concept of joint and several liability, users who experience losses from reliance on materially misstated financial statements may recover full damages from any defendant, including the audit firm, regardless of the level of fault for that defendant.

 

  1. Claims made against auditors that are based on the deep pocket theory, are most likely to occur in courts where damages are based on proportionate liability.

 

  1. Attorney contingent fees act as a deterrent to legal actions taken against audit firms.

 

  1. To encourage multiple lawsuits arising from the same claim, class action lawsuits are employed.

 

  1. The failure to exercise minimal care is known as ordinary negligence.

 

  1. Liability concepts are developed through court decisions based on ordinary negligence, gross negligence, or fraud under common law.

 

 

  1. Statutory law references liability concepts developed through court decisions.
  2. An example of the expectations gap would be a misunderstanding whereby shareholders mistakenly believe that they are entitled to recover losses suffered on investments for which the auditor provided them with an unqualified opinion on the financial statements.

 

  1. A failure to use even minimal care, a reckless disregard for the truth, or reckless behavior describes the concept of gross negligence.

 

  1. A specific third party named in the audit engagement letter as a user of the audited financial statements, is an identified user.

 

  1. When there is an intentional concealment or an unintentional misrepresentation of a material fact that causes damage to those deceived, fraud has occurred.

 

  1. A civil wrong, other than a breach of contract, based on ordinary negligence, gross negligence, or fraud, is referred to as a tort.

 

  1. Courts make use of professional auditing standards and financial accounting principles as criteria for determining an auditor’s duty not to be negligent.

 

  1. Failure to provide the audit report in a timely manner is a potential cause of action against the auditor for breach of contract.

 

  1. It is possible for auditors to be held liable to third parties for fraud, but not for ordinary or gross negligence.

 

  1. When an important event occurs, such as a change in auditors, it is reported to the SEC by filing Form 8-K.

 

  1. Neither the 1933 and 1934 Securities Acts, nor the Sarbanes-Oxley Act of 2002 provide for criminal actions against auditors.

 

  1. Under the Securities Act of 1933, the accuracy of the registration statement is determined as of the date normal audit work is completed, which may be several months before the effective date of the registration statement.

 

  1. A foreseeable user of audited financial statements can be described as a member of a limited class of users for a particular transaction.

 

Option 1

Low Cost Option
Download this past answer in few clicks

3.83 USD

PURCHASE SOLUTION

Already member?

Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

rated 5 stars

Purchased 7 times

Completion Status 100%
View Answer

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)