Question 1

In an opinion, an auditor can include a general statement disclaiming any liability for false or misleading financial statements.

Accepted Answer

A) True 
 B)False

Question 2

In all cases involving allegations of negligence, the plaintiff must prove that the professional's breach of the duty of care actually caused some injury.

Accepted Answer

A) True 
 B)False

Question 3

Professionals are required to adhere to certain standards of performance within their profession.

Accepted Answer

A) True 
 B)False

Question 4

Fact Pattern 33-1
​Nelson, an accountant, enters into a contract to provide services to Operational Processes, Inc. (OPI) . Nelson does not finish the work within the contract's deadline. This causes OPI to fail to meet certain other deadlines owed to Prime Bank, which results in the firm's payment of penalties to the bank.
-Refer to Fact Pattern 33-1.OPI may be entitled to​

Accepted Answer

A)   ​payment from Nelson of the amount of the penalties in damages.
B)   ​specific performance of any future contract with Nelson.
C)   ​an injunction against future breaches of contract by Nelson.
D)   ​no damages or other relief because Nelson is not liable.E) A) and D)
F) All of the above

Question 5

Digital Systems Corporation files a suit against Ethan, its former accountant, alleging constructive fraud. Digital Systems need not prove​​

Accepted Answer

A)   ​misstatement of a material fact.
B)   ​intent to deceive.
C)   ​justifiable reliance.
D)   ​an injury.E) B) and C)
F) C) and D)

Question 6

Geoff is an attorney, whose clients include Hydroponic Superstores, Inc. Unless Hydroponic has violated securities law, the contents of Geoff's file on Hydroponic may be disclosed to someone other than the firm​

Accepted Answer

A)   ​under no circumstances.
B)   ​only under a court order (with or without Hydroponic's consent) .
C)   ​only with Hydroponic's consent.
D)   ​under any circumstances.E) All of the above
F) B) and C)

Question 7

Kiana can be described as "a reasonably competent general practitioner of ordinary skill, experience, and capacity." This is the normal standard for judging the performance of

Accepted Answer

A)  any individual.
B)  an accountant.
C)  an attorney.
D)  a tax preparer.E) None of the above
F) All of the above

Question 8

For a plaintiff to recover damages from an accountant under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, ordinary negligence is notenough.

Accepted Answer

A) True 
 B)False

Question 9

A failure to follow generally accepted accounting principles and generally accepted auditing standards is proof of a lack of due diligence.

Accepted Answer

A) True 
 B)False

Question 10

Accountants and other professionals do not face liability under the common law for any breach of contract.

Accepted Answer

A) True 
 B)False

Question 11

Under rules of professional conduct, a lawyer should not engage in conduct involving "dishonesty."​

Accepted Answer

A) True 
 B)False

Question 12

Miriam is an accountant. Natalie is an attorney. Which professional is most restricted from disclosing her or his client's communication?​

Accepted Answer

Most professionals are restrained by the...

Exam 33: Liability of Accountants and Other Professionals

Kiana can be described as "a reasonably competent general practitioner of ordinary skill, experience, and capacity." This is the normal standard for judging the performance of

Correct Answer
verified

Accountants and other professionals do not face liability under the common law for any breach of contract.

Correct Answer
verified

Miriam is an accountant. Natalie is an attorney. Which professional is most restricted from disclosing her or his client's communication?

Correct Answer
verified
Most professionals are restrained by the...
View Answer

Professionals are required to adhere to certain standards of performance within their profession.

Correct Answer
verified

Digital Systems Corporation files a suit against Ethan, its former accountant, alleging constructive fraud. Digital Systems need not prove

Correct Answer
verified

Correct Answer
verified

Geoff is an attorney, whose clients include Hydroponic Superstores, Inc. Unless Hydroponic has violated securities law, the contents of Geoff's file on Hydroponic may be disclosed to someone other than the firm

Correct Answer
verified

Under rules of professional conduct, a lawyer should not engage in conduct involving "dishonesty."

Correct Answer
verified

For a plaintiff to recover damages from an accountant under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, ordinary negligence is notenough.

Correct Answer
verified

In an opinion, an auditor can include a general statement disclaiming any liability for false or misleading financial statements.

Correct Answer
verified

In all cases involving allegations of negligence, the plaintiff must prove that the professional's breach of the duty of care actually caused some injury.

Correct Answer
verified

A failure to follow generally accepted accounting principles and generally accepted auditing standards is proof of a lack of due diligence.

Correct Answer
verified

Exam 33: Liability of Accountants and Other Professionals

Kiana can be described as "a reasonably competent general practitioner of ordinary skill, experience, and capacity." This is the normal standard for judging the performance of

Correct AnswerverifiedShow Answer

Accountants and other professionals do not face liability under the common law for any breach of contract.

Correct AnswerverifiedShow Answer

Miriam is an accountant. Natalie is an attorney. Which professional is most restricted from disclosing her or his client's communication?​

Correct AnswerverifiedMost professionals are restrained by the...View AnswerShow Answer

Professionals are required to adhere to certain standards of performance within their profession.

Correct AnswerverifiedShow Answer

Digital Systems Corporation files a suit against Ethan, its former accountant, alleging constructive fraud. Digital Systems need not prove​​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Geoff is an attorney, whose clients include Hydroponic Superstores, Inc. Unless Hydroponic has violated securities law, the contents of Geoff's file on Hydroponic may be disclosed to someone other than the firm​

Correct AnswerverifiedShow Answer

Under rules of professional conduct, a lawyer should not engage in conduct involving "dishonesty."​

Correct AnswerverifiedShow Answer

For a plaintiff to recover damages from an accountant under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, ordinary negligence is notenough.

Correct AnswerverifiedShow Answer

In an opinion, an auditor can include a general statement disclaiming any liability for false or misleading financial statements.

Correct AnswerverifiedShow Answer

In all cases involving allegations of negligence, the plaintiff must prove that the professional's breach of the duty of care actually caused some injury.

Correct AnswerverifiedShow Answer

A failure to follow generally accepted accounting principles and generally accepted auditing standards is proof of a lack of due diligence.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Miriam is an accountant. Natalie is an attorney. Which professional is most restricted from disclosing her or his client's communication?

Correct Answer
verified
Most professionals are restrained by the...
View Answer

Correct Answer
verified

Digital Systems Corporation files a suit against Ethan, its former accountant, alleging constructive fraud. Digital Systems need not prove

Correct Answer
verified

Correct Answer
verified

Geoff is an attorney, whose clients include Hydroponic Superstores, Inc. Unless Hydroponic has violated securities law, the contents of Geoff's file on Hydroponic may be disclosed to someone other than the firm

Correct Answer
verified

Under rules of professional conduct, a lawyer should not engage in conduct involving "dishonesty."

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified