Acc. Lia Class Notes Flashcards
0
Q
GAAP
A
Standard for accountants
1
Q
GAAS
A
For auditors
2
Q
Auditing
A
Looks at financial condition of company
Sees whether it’s reported accurately
3
Q
3 audit opinions
A
1 unqualified opinion
2 qualified opinion
3 adverse opinion
4
Q
Unqualified opinion
A
Best audit opinion
Info is accurately represented
5
Q
Qualified opinion
A
Some departure from what represented in the company
6
Q
Adverse opinion
A
Worst opinion you can get
7
Q
3 theories of liability
A
1 breach of contract
2 fraud
3 negligence
8
Q
Unqualified opinion shows a company is…
A
Financially healthy
9
Q
If an accountant fills out a registration statement with the SEC for a company with an unqualified opinion…
A
They can be held liable under securities laws
