Questions from Accounting for Government and Non-Profit

Q: Explain how an engagement letter might affect an auditor's liability to clients

Explain how an engagement letter might affect an auditor's liability to clients under common law.

Q: Compare and contrast traditional auditors' legal responsibilities to clients and third-

Compare and contrast traditional auditors' legal responsibilities to clients and third-party users under common law. How has that law changed in recent years?

Q: Is the auditor's liability affected if the third party was unknown rather

Is the auditor's liability affected if the third party was unknown rather than known? Explain.

Q: Contrast the auditor's liability under the Securities Act of 1933 with that

Contrast the auditor's liability under the Securities Act of 1933 with that under the Securities Exchange Act of 1934.

Q: Distinguish between the auditor's potential liability to the client, liability to

Distinguish between the auditor's potential liability to the client, liability to third parties under common law, civil liability under the securities laws, and criminal liability. Describe one situat...

Q: What potential sanctions does the SEC have against a CPA firm?

What potential sanctions does the SEC have against a CPA firm?

Q: In what ways can the profession positively respond to and reduce liability

In what ways can the profession positively respond to and reduce liability in auditing?

Q: State several factors that have affected the incidence of lawsuits against CPAs

State several factors that have affected the incidence of lawsuits against CPAs in recent years.

Q: The following questions deal with liability under the 1933 and 1934 securities

The following questions deal with liability under the 1933 and 1934 securities acts. Choose the best response. a. Major, Major, & Sharpe, CPAs, are the auditors of MacLain Technologies. In connect...

Q: What are the major differences in the scope of the audit responsibilities

What are the major differences in the scope of the audit responsibilities for CPAs, GAO auditors, IRS agents, and internal auditors?