chap 5 criminal liability

Question 1

accounting principles cnat be relied on exc lusively in deciding whether F/S are fairly presented. what else is requireed?

Answer 1

the substance of the statements, considering all facts

Question 2

for accountants, Federal laws make it a criminal offense to defraud another person through what?

Answer 2

knowingly being involved with false financial statements.

Question 3

The Sarbanes-Oxley Act of 2002 made it a felony to destroy or create documents to impede or obstruct a federal investigation. . these provisios were enacted in response to what?

Answer 3

United States v. Andersen, in which the auditor, Andersen, was held responsible for shredding documents in the Enron case

Question 4

an investigation of the integrity of management is an important part of deciding on what?

Answer 4

the accepatbility of clients and the extent of work to perform

Question 5

The Sarbanes-Oxley Act of 2002 made it a felony to destroy or create what?

Answer 5

documents to impede or obstruct a federal investigation