Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

REG EXam > Legal Duties And Resposibilities > Flashcards

Legal Duties And Resposibilities Flashcards

0
Q

The accountant client privilege is recognized

A

Approximately 15 state legislators

Congress for vey limited purposes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

The state privilege of accountant-client testimonial privilege only applies to state courts not

A

Federal courts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A CPA firm may disclose client name unless disclosure would express

A

Experiencing financial difficulties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Do not disclose client name in

A

Bankruptcy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When a claim is not criminally liable for securities fraud

A

A claim for RICO cannot b pursued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Under 1962 defendants are liable for RICO when it conduct or participate in

A

Managing the firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The FCPA accounting provisions apply under

A

sEC registered companies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

When a person has to pay extra to get someone else to do a job performed by another person they may be compensated for the

A

Extra costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Liability disclaimers are not upheld in

A

Court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The three viewpoints regarding an accountants liability are

A

Privity of contract
Reasonably forseeable users
Limited class of actually forseen users

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The best defense for fraud is to prove

A

Lack of Scienter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Constructive fraud involves

A

Gross negligence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

In a negligence case the plaintiff must prove your cpa violated the

A

GAAS in performing the audit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Two ways to establish intent are

A

Knew about the misrepresentation

Acted recklessly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Punitive damages related to intentional or

A

Reckless

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A CPA is negligent if he/she fails to correct errors in previously issued

A

Audit reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Ultramares requires Privity before an accountant is label for

A

Negligence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Sox did not require the rotation of audit firms every seven years just the

A

Rotation of audit engagement partner and reviewing partner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

When a RICO claim is predicated of securities fraud no Rico civil suit can be brought until defendant has been

A

Criminally convicted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Mail and wire fraud are RICO

A

Predicate acts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A…FCPA accounting provisions only apply to SEC registered

A

Corporations

21
Q

An accountant who negligently prepares a clients financial report will b liable to

A

Third parties where the CPA had prior knowledge of the existence of a limited class of potential users

22
Q

When an accountant knows the financial statements will be used by someone and it contains an error. The plaintiff must prove

A

Negligence and reliance

23
Q

Privity is not required in a

A

Fraud case

24
Q

Consequences of breach of contract by accountant the account is entitled to

A

Fees if minor no fees if major

25
Q

If breach of contract by accountant the client is entitled to

A

Compensatory damages but not punitive damages

26
Q

Disclaimers in contract does not void accountant from

A

Liability

27
Q

In a negligence case the following elements must be proven

A

Duty
Breach
Damages
Proximate cause

28
Q

Contributory negligence results is used in all jurisdictions where the

A

clients carelessness interferes with the accountants performance

29
Q

Clients carelessness that helps create the situation the auditor failed to detect is accepted by

A

Most jurisdictions

30
Q

Elements of fraud

A

False representation of fact
The misrepresented (or omitted) fact was material
The accountant knew or recklessly disregarded the falsity
The accountant intended to and induce plaintiff reasonable reliance on the misstatement or omission.
The client suffered damages

31
Q

Fraud is

A

An intentional tort
Runs to all foreseeable victims of the fraud
May be liable for punitive and compensatory damages

32
Q

Restatement view is the

A

Majority view

33
Q

Ultramares accountant is only liable to those who there is

A

Privity of contract

34
Q

Accounting provisions apply to all companies registered with

A

The SEC

35
Q

Internal accounting records must provide reasonable assurance that

A

Transactions are executed in accordance with the mgt general or specific authorization
Transactions recorded as necessary to permit preparation of proper financial info

Maintain accountability for assets

Access to assets is authorized

Recorded assets are compared with existing assets at reasonable intervals

36
Q

Criminal penalties of bribery are

A

Individual maximum of $100,000 or 5 years jail
Corp max $1M
No criminal prosecutions for inadvertent or insignificant errors

Civil maximum civil fine of $10,000

37
Q

Criminal Rico charges can be brought by the

A

DOJ dept of justice

38
Q

Civil charges can be bought by

A

Individuals who sue for treble damages and attorney fees

39
Q

Rico prohibits

A

Receiving money or property through a pattern of racketeering and investing into an enterprise

Acquiring and controlling an enterprise through racketeering

Conducting or participating in enterprise affairs

Conspiring to violate the 3 points above

40
Q

The elements of racketeering under 1962(c) are

A

Defendant conducted or participated in the conduct

Of an enterprise

Through a pattern

Of racketeering

41
Q

Racketeering activity is

A

Mail fraud
Wire fraud
And other predicate acts

42
Q

When probing Rico for securities the plaintiff must prove the defendant had

A

already been convicted of securities fraud

43
Q

Punishments under SOX for destruction of records are

A

10 yrs jail and fine for failure to retain records

Fine or imprisoned for up to 20 years for destruction of records and corrupt tampering with docs to b used in an official proceeding

44
Q

Types of testimonial privileges

A

Attorney client, doctor patient, priest penitent.

45
Q

Work product privileged

A

Prevents one party from learning the other side strategies for litigation

46
Q

15 states allow an accountant client privilege

A

The privilege belongs to the client
Can be waived by client
Waiver of part is waiver to all
Only applies to state court

47
Q

The lawyers umbrella can

A

Can shelter communications with an accountant when used for preparing litigation.

48
Q

Tax practitioners privilege

A

Exceptions criminal matters
Matters to IRS
Tax advice on state or local matters
Written advice on promotion of tax shelter

49
Q

The tax privilege does not protect

A

Information for facilitating tax return preparation

General accounting advice

50
Q

Section 6713 imposes a civil penalty for

A

Each unauthorized disclosure

51
Q

Section 7216 imposes a criminal fine

A

And potential imprisonment who knowingly disclose info and use info for other purposes other than to prepare a return

REG EXam (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions