Select the necessary words from the list of possibilities to complete the following statements. 2 Statements Answer The 1. auditors' review for subsequent events. case, a landmark case of liability under the Securities Act of 1933, involved criticism of the A document including audited financial statements that must be filed with the SEC by any company intending to 2. sell its securities to the public through the mails or interstate commerce is called a 3. An is the written contract summarizing the relationship between the auditors and the client. The 4. statements. case was a landmark case regarding the accountant's liability for unaudited financial 5. Gross negligence is also referred to as

Select the necessary words from the list of possibilities to complete the following statements. 2 Statements Answer The 1. auditors' review for subsequent events. case, a landmark case of liability under the Securities Act of 1933, involved criticism of the A document including audited financial statements that must be filed with the SEC by any company intending to 2. sell its securities to the public through the mails or interstate commerce is called a 3. An is the written contract summarizing the relationship between the auditors and the client. The 4. statements. case was a landmark case regarding the accountant's liability for unaudited financial 5. Gross negligence is also referred to as

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Describe the users of audited financial statements and the decisions that they need to make based on reliable information. Please use the illustration below to help you answer this question.
PSA 570 (Going Concern) states that a fundamental principle in the preparation of financial statements is the going concern assumption. Under this assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws and regulations. The responsibility to make an assessment of an entity's ability to continue as a going concern rests with the Auditor Entity's management SEC Entity's creditors
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1)List and explain the General Standards. 2)What are the Auditor’s Liabilities under Common Law and Contract Law. 3) What are the Auditor’s Liabilities under Statutory Law (SEC Acts and Other Acts of Congress). Securities Act 1933: Securities & Exchange Act 1934: Foreign Corrupt Practices Act (1977): Private Securities Litigation Reform Act (1995/1998): Sarbanes-Oxley Act (2002):
Select the necessary words from the list of possibilities to complete the following statements.
Consider the following statements: I. For an audit of a non-public company a issue involving information in the “Management Discussion and Analysis section of the company’s annual report would be addressed in an Other Matter paragraph. II. The new PCAOB audit report includes a section involving Key Audit Matters. I is true; II is true I is true; II is false I is false; II is true I is false; II is false
Under which act (or acts) must a client prove that a CPA has performed an audit with due diligence to establish that CPA's liability? Securities Securities Exchange Act of 1933 Act of 1934 Yes A. Yes B. Yes No C. No Yes D. No No Multiple Choice 22
The burden of proof that must be proven to recover losses from the auditors under the Securities Exchange Act of 1934 is generally considered to be: :
Please answer the question: After the Securities Act of 1933 and Securities Exchange act of 1934, what did auditors focus on? Why was the change in focus necessary?
The audit report date on a standard unmodified opinion audit report indicates A. the last day of the fiscal period. B. the last day of the auditor's responsibility for the review of significant events that occurred after the date of the financial statements. O C. the date on which the financial statements were filed with the Securities and Exchange Commission. D. the last date on which users may institute a lawsuit against either the client or the auditor.
The standard unqualified opinion based on the audit of a public company's financial statements includes a. A discussion of Key Audit Matters if KAMs are discovered. b. A reference to Key Audit Matters if no KAMs are discovered. c. A statement that the CPA firm is registered with the AICPA. d. An indication of how long the firm has served as the company's auditors. e. A Basis for Opinion section preceding the Opinion of Financial Statements section.
The Overstock-Grant Thornton dispute was publicly aired via disclosure statements filed with the SEC. What impact do you believe those disclosures had on the investing public's confidence in the financial reporting domain and the independent audit function? Were the interactions between Overstock and Grant Thornton unprofessional or otherwise inappropriate? Explain.