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页数:40页
时间:2019-06-02
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1、AuditingandAssuranceServices,15e(Arens)Chapter5LegalLiabilityLearningObjective5-11)Discussthreemajorfactorsthathavecontributedtotherecentincreaseinthenumberoflawsuitsagainstauditorsandthesizeofawardstoplaintiffs.Answer:Majorfactorsinclude:•Thegrowingawarenessof
2、theresponsibilitiesofpublicaccountantsbyusersoffinancialstatements.•AnincreasedconsciousnessonthepartoftheSecuritiesandExchangeCommissionregardingitsresponsibilityforprotectinginvestors'interests.•Thecomplexityofauditingandaccountingfunctionscausedbytheincreasi
3、ngsizeofbusinesses,theglobalizationofbusiness,andthecomplexitiesofbusinessoperations.•LargecivilcourtjudgmentsagainstCPAfirms.•Thetendencyofsocietytoacceptlawsuitsbyinjuredpartiesagainstanyonewhomightbeabletoprovidecompensation,regardlessofwhowasatfault,coupled
4、withjointandseveralliabilitydoctrine.•ThewillingnessofCPAfirmstosettlelegalproblemsoutofcourttoavoidcostlylegalfeesandadversepublicity,ratherthanpursuingresolutionthroughthejudicialprocess.•Thedifficultyjudgesandjurorshaveunderstandingandinterpretingtechnicalac
5、countingandauditingmatters.•Theglobalrecessionandtougheconomictimesresultinbusinessfailures,whichpromptstakeholderstoseekrestitutionfromothers,includingexternalauditors.Terms:Majorfactorsthathavecontributedtotherecentincreaseinthenumberoflawsuitsagainstauditors
6、Diff:ModerateObjective:LO5-1AACSB:ReflectivethinkingskillsLearningObjective5-21)A(n)________failureoccurswhenanauditorissuesanerroneousopinionbecauseitfailedtocomplywithrequirementsofauditingstandards.A)businessB)auditC)ethicsD)processAnswer:BTerms:Failurewhich
7、occurswhenanauditorissuesanerroneousopinionDiff:EasyObjective:LO5-2AACSB:Reflectivethinkingskills40Copyright©2014PearsonEducation,Inc.2)Theexpectationgap:A)existsbetweentheauditorandtheSEC.B)existsbecauseauditorsguaranteetheaccuracyofthefinancialstatements.C)of
8、tenresultsinunwarrantedlawsuitsagainsttheauditor.D)isalegalconceptsupportedbythefederalcourts.Answer:CTerms:ExpectationgapDiff:ModerateObjective:LO5-2AACSB:Reflectivethinkin
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