Questions from Accounting for Government and Non-Profit

Q: Barbara Whitley had great expectations about her future as she sat in

Barbara Whitley had great expectations about her future as she sat in her graduation ceremony in May 2010. She was about to receive her Master of Accountancy degree, and next week she would begin her...

Q: In 2006, Arnold Diaz was a bright, upcoming audit manager

In 2006, Arnold Diaz was a bright, upcoming audit manager in the South Florida office of a national public accounting firm. He was an excellent technician and a good "people person." Arnold also was a...

Q: Frank Dorrance, a senior audit manager for Bright and Lorren,

Frank Dorrance, a senior audit manager for Bright and Lorren, CPAs, has recently been informed that the firm plans to promote him to partner within the next year or two if he continues to perform at t...

Q: The SEC Enforcement Division investigates possible violations of securities laws, recommends

The SEC Enforcement Division investigates possible violations of securities laws, recommends SEC action when appropriate, either in a federal court or before an administrative law judge, and negotiate...

Q: Lawsuits against CPA firms continue to increase. State your opinion of

Lawsuits against CPA firms continue to increase. State your opinion of the positive and negative effects of the increased litigation on CPAs and on society as a whole.

Q: Distinguish between business failure and audit risk. Why is business failure

Distinguish between business failure and audit risk. Why is business failure a concern to auditors?

Q: How does the prudent person concept affect the liability of the auditor

How does the prudent person concept affect the liability of the auditor?

Q: Distinguish between "fraud" and "constructive fraud."

Distinguish between "fraud" and "constructive fraud."

Q: Discuss why many CPA firms have willingly settled lawsuits out of court

Discuss why many CPA firms have willingly settled lawsuits out of court. What are the implications to the profession?

Q: A common type of lawsuit against CPAs is for the failure to

A common type of lawsuit against CPAs is for the failure to detect a fraud. State the auditor's responsibility for such discovery. Give authoritative support for your answer.