Select the appropriate case to which each is most closely related.Concluded that auditors could be liable to third parties who were not in privity with them.Multiple ChoiceCredit Alliance v. Arthur Andersen.Ultramares Corp, v. Touche.Smith v. London Assurance Corp.State Street Trust v. Ernst. Smith v. London Assurance Corp.State Street Trust v. Ernst.1136 Tenants' Corp. v. Max Rothenberg & Co.Ernst & Ernst v. Hochfelder.Escott v. BarChris Construction Corp.

An Auditor is appointed by a company in order to execute an audit. An auditor can be either…

Answered: sely related. Concluded that auditors…

sely related. Concluded that auditors could be liable to third parties who were not in privity with them. Multiple Choice Credit Alliance v. Arthur Andersen. Ultramares Corp. v. Touche.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter4: Professional Legal Liability

Section: Chapter Questions

Problem 15RQSC

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Similar questions

Which of the following cases provides auditors the broadest exposure for liability to thirdparties for ordinary negligence under common law?a. Credit Alliance v. Arthur Andersen.b. Fleet National Bank v. Gloucester Co.c. Rosenblum Inc. v. Adler.d. Ultramares.
2. A client has departed from GAAP for what you, the auditor, considers to be justifiable. The financial statements would have been misleading if the client had not departed from GAAP. Circumstance: Type of Opinion:
Auditors may be held liable to both their clients and third parties under common law. a. What must a client prove to recover its losses from the auditors under common law? b. In a court that adheres to the precedent set by the Ultramares v. Touche case, what must an ordinary third party prove to recover losses from the auditors under common law
What red flags did the auditors miss in the Parmalat case? Please be specific.
Which of the following statements is most likely to be included in an attorney letter?a. “Certain representations in this letter are described as being limited to matters that arematerial.”b. “If any unasserted claims or assessments are omitted from this disclosure, please provide this information directly to our auditors.”c. “Our work enabled us to notice some actions that could enhance the profitability of theCompany.”d. “Please furnish to our auditors such explanation, if any, that you consider necessary tosupplement the foregoing information.”
4) Explain if, and why an accountant will be held liable to: its client, to 3rd party intended users of the financial statements and audits it prepares for its client, and to reasonably foreseeable users of the work, it prepared for its client. ∙ Be sure to identify who reasonably foreseeable users would be and why the accountant is responsible to them in the absence of privity.
A number of cases have considered the auditor’s liability in relation to persons other than the immediate client. Even so, the AWA case established that: Select one: a. Duty of care and skill means following the accounting standards b.auditors have a contractual duty to oversee and review the work of inexperienced audit staff c.Auditors are only liable for the proportion of damages attributable to their actions d.Auditors have a duty of care only to the shareholders.
In which of the following circumstances would an auditor most likely meet with the client's legal counsel to discuss the likely outcome of the litigation and claims?I. The auditor determines that the matter is a significant risk II. There is a disagreement between management and the entity's legal counsel.III. The subject matter of the litigation is complex I and II only. II and III only. I and III only. I, II, and III.
Please help me
a. Discuss in detail how Enron Scandal influenced the "true and fair view" concept in auditing. Support your answer with the relevant resource(s).
Do you believe that the SEC should prohibit auditors from providing all nonaudit services for audit clients? Use ethical reasoning to support your answer.
Who can sue the auditor? how they can sue the auditor. Explain.