AUDITING+ASSURANCE SERVICES (LL)
11th Edition
ISBN: 9781266448119
Author: MESSIER
Publisher: MCG
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Question
Chapter 20, Problem 20.10RQ
To determine
Concept Introduction:Auditor legal liability includes the legal activities against or for the auditors. The auditor is in the contractual relationship with theclient and if he does not perform according to the terms of the contract, the client can claim against the auditor.As per the common law, the auditor is liable for the negligence, breach of contract, and fraud procedure claimed by the clients.
To describe: The type of sanctions that the SEC and the PCAOB can impose an auditor
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Chapter 20 Solutions
AUDITING+ASSURANCE SERVICES (LL)
Ch. 20 - Prob. 20.1RQCh. 20 - Prob. 20.2RQCh. 20 - Prob. 20.3RQCh. 20 - Prob. 20.4RQCh. 20 - Prob. 20.5RQCh. 20 - Prob. 20.6RQCh. 20 - Prob. 20.7RQCh. 20 - Prob. 20.8RQCh. 20 - Prob. 20.9RQCh. 20 - Prob. 20.10RQ
Ch. 20 - Prob. 20.11RQCh. 20 - Prob. 20.12RQCh. 20 - Prob. 20.13RQCh. 20 - Prob. 20.14MCQCh. 20 - Prob. 20.15MCQCh. 20 - Prob. 20.16MCQCh. 20 - Prob. 20.17MCQCh. 20 - Prob. 20.18MCQCh. 20 - Prob. 20.19MCQCh. 20 - Prob. 20.20MCQCh. 20 - Prob. 20.21MCQCh. 20 - Prob. 20.22MCQCh. 20 - Prob. 20.23MCQCh. 20 - Prob. 20.24MCQCh. 20 - Prob. 20.25MCQCh. 20 - Prob. 20.26PCh. 20 - Prob. 20.27PCh. 20 - Prob. 20.28PCh. 20 - Prob. 20.29P
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- What are the main threats to auditor's ethics?arrow_forwardWhat additional constraints and obligations do auditors face when offering nonaudit services to public companies?arrow_forwardWhat possible actions would an auditor might take if a client’s financial statements depart from GAAP. Would the demand for assurance services increase or decrease in the future?arrow_forward
- How has the Sarbanes–Oxley Act attempted to ensure that external auditors will be completely independent in the future?arrow_forwardWhat are the implications of the cautious person notion for the auditor's legal responsibility?arrow_forwardWhat additional constraints and obligations do auditors face when doing nonaudit services for public companies?arrow_forward
- What are some of the advantages and disadvantages of permitting auditors to provide nonaudit services (such as tax services) to clients?arrow_forwardWhat are the two requirements for the auditor to offer an unqualified opinion on internal financial reporting controls? What causes the auditor to offer a qualified or disclaimer opinion on internal control over financial reporting?arrow_forwardWhich organizations are normally exempted from the SEC’s registration requirements?arrow_forward
- Explain how the purposes and principles of internal controls are different between accounting systems reporting under IFRS versus U.S. GAAP.arrow_forwardWhat type of opinion(s) would the audit team issue on the effectiveness of internal control over financial reporting if a material weakness in internal control exists? How would the standard report be modified?arrow_forwardWhat is the auditors responsibility regarding the noncompliance with laws by a client?arrow_forward
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