In a common law action against an accountant, lack of privity is a viable defense ifthe plaintiff(1) is the client’s creditor who sues the accountant for negligence.(2) can prove the presence of gross negligence that amounts to a reckless disregardfor the truth.(3) is the accountant’s client.(4) bases the action upon fraud.

Q: The Sarbanes-Oxley Act was a market response to accounting fraud, and the Dodd-Frank act was a…

A: The Above Statement "The Sarbanes-Oxley Act was a market response to accounting fraud, and the…

Q: For each situation below identify and explain the threat and one fundamental principle that is…

A: Financial statements are the final reports of a company, prepared at the end of a financial period.…

Q: When an employee is in a position to penetrate and hide fraud, incompatible roles exist. False or…

A: Accounting fraud: Accounting fraud refers to the deliberate manipulation and illegal alteration of…

Q: a. Identify the type of fraud that took place. (e.g. misappropriation of assets o fraudulent…

A: a. The type of fraud that took place, in this case, is Misappropriation of assets. In this Case,…

Q: During the interview of a suspect in an embezzlement case, several common themes are developed that…

A: Auditors are trained to extract numbers from individuals, but forensic auditors are trained to do…

Q: Which of the following combinations is a good way to conceal employee fraud but an ineffective means…

A: The management fraud alludes to an intentional misleading by the executives to collect monetary…

Q: A company is required to report a liability on its balance sheet when it expects to lose a lawsuit…

A: The accounting principal of conservatism states that all losses should be recorded but uncertain…

Q: Determine if false financial reporting or misuse of assets has occurred. Compare and contrast the…

A: Generally, fraudulent financial reporting happens when an international deception occurs in the…

Q: Why must auditors distinguish between fraud committed by employees and management?  Are auditors…

A: It is one of the auditor's responsibility to obtain reasonable assurance that the financial…

Q: Which of the following items is not true about fraud?a. It can cause injury or damage to another…

A: Fraud is an intentional mis-representation of facts with the view to have unfair advantage for self…

Q: Incompatible duties exist when an employee is in a position tlo penetrate and conceal errors of…

A: Fraud means intentional concealment of facts or wrongful action resulting in financial or personal…

Q: action which can be taken by SAICA against the external auditor if he/she applied negligence in…

A: The action that can be taken by SAICA ( South African Institute of Chartered Accountants) against…

Q: vestigations into the corporate scandals of the recent past revealed that the accountant did not…

A: Accountants and auditors are put in place so that they can give assurance that the company is…

Q: Business damages, as a result of financial fraud, directly impact the operations of any company.…

A: Fraud includes activities such as theft, corruption, conspiracy, bribery etc. Fraud can occur in any…

Q: Which of the following is a way to prove that a fraud was intentional? A. Show that the suspect…

A: Solution: Fraud is wrongful act intended for personal or financial gain.

Q: Which of the following is NOT an element of the fraud triangle? a. ethics b. justifiable reliance c.…

A: Fraud: Fraud refers to a malicious act done by people to fulfill their own personal benefits. In…

Q: Rationalization for fraud can fall under two categories: “no harm” and “no responsibility.” Assume…

A: Rationalization: Rationalization emphasizes on the justification provided by an employee and finds…

Q: Fraud is an ________ act by any person to conceal the truth, deceive and obtain illegal advantage.…

A: Following is the answer to the given question

Q: Which of the following statements is correct with regards to the auditor's responsibility concerning…

A: The answer is option (c)  [ The auditor is responsible for obtaining reasonable assurance that the…

Q: . Identify from the following the situation/s where auditors are removed by the client. a. All the…

A: Solution: Following are the situations where auditors are removed by the client: 1. Involve in fraud…

Q: A misstatement in the financial statements can be considered material if knowledge of…

A: We have the following question: A misstatement in the financial statements can be considered…

Q: When investors sue auditors for damages under section 11 of the Securities Act of 1933,they must…

A: The Securities Exchange Act 1934:   "The Securities Exchange Act 1934 controls everyday trading of…

Q: “fraud   triangle

A: Fraud triangle theory explains the reasons for committing fraud.

Q: ecognize the difference between dishonest financial reporting and the misuse of property. Compare…

A: Answer: Fraudulent and forgery activities are done to manipulate numbers in financial statements

Q: Which of the following cases provides auditors the broadest exposure for liability to thirdparties…

A: Under the case of Rosenblum Inc. v. Adler., auditors are provided the broadest exposure for…

Q: Securities fraud’s lack of mooring in a fully developed concept of fraud produces at least three…

A: Securities Fraud is a fraud which is considered as serious while collar crime where investors are…

Q: Which of the following would be the auditors’ most likely defense in an action broughtunder the…

A: The Securities Exchange Act 1934: "The Securities Exchange Act 1934 controls everyday trading of…

Q: An attorney may impeach an opposing party’s witness by showing/proving that the witness: A. Has been…

A: An attorney may impeach an opposing party’s witness by 5 ways: 1. witness has made prior…

Q: Other than technical knowledge of accounting standards, etc., what other skills are critical for…

A: There are many skills critical for forensic accounting and fraud examinations

Q: An auditor was sued and found guilty of negligence. For each of the following situations, indicate…

A: Hello, I am only answering first three subpart as per the policy and if you want others to be…

Q: In what ways might accounting frauds be similar to casesof academic dishonesty?

A: Definition: Fraud: Presentation of inaccurate data, intentionally for personal gains. There could be…

Q: Which of the following is NOT a possible legal risk that can arise because of a fraud investigation…

A: Malicious prosecution occurs when a person is arrested without proper grounds. For example: Person A…

Q: A company is required to report a liability on its balance sheet when it expects to lose a lawsuit…

A: Solution Principle of conservatism state that record all the possible losses but revenues and assets…

Q: As a fraud investigator, why you should be concerned about fraud trials as a result of resolving a…

A: Answer:-  Fraud investigator :- Fraud investigator is that person who investigates the alleged fraud…

Q: This corporate con stated that she stole from the company because she believed it was "okay" to take…

A: The fraud triangle represents the three basic reasons which influence the person to commit the…

Q: What are some effective methods that could have helped in dealing with an interview subject from…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS     Effective methods that could have helped in…

Q: Although Andersen’s conviction was overturned, do you believe that its employees acted in an ethical…

A: Auditing: Auditing is the process by which assertions made by management about financial…

Q: An auditor was sued and found guilty of negligence. For each of the following situations, indicate…

A: Someone who is negligent has not exercised sufficient caution or has neglected to do something that…

Q: When an employee is in a position to detect and hide fraudulent activity, incompatible obligations…

A: The Answer :

Q: What are the defining characteristics of (a) white-collar crime, (b) employee fraud, (c)…

A:

Q: What is an example of rationalization as one of the three elements causing a person to commit fraud?

A: Their are 3 fraud risk factors or characteristics  of fraud  They are 1.Incentive/pressure to commit…

Q: The exclusionary rule: A. Prohibits a party from testifying about the contents of a document without…

A: The exclusionary rule is used by courts to prevent police officers and other government officials…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.