Professional Liability and Accountability

What standard of conduct must an accountant generally meet to fulfill their duty of care?

What is considered prima facie evidence of negligence on the part of an accountant?

Under the traditional Ultramares rule, to whom does an accountant owe a duty of care?

The majority of courts have adopted which view on an accountant's liability to third parties for negligence?

According to the Sarbanes-Oxley Act of 2002, what is the required retention period for all working papers related to an audit or review of a publicly traded company?

Under Section 11 of the Securities Act of 1933, what is the primary defense an accountant can use to avoid liability for a misstatement in a registration statement?

What key element must a plaintiff prove to hold an accountant liable under Section 10(b) and SEC Rule 10b-5?

What is the maximum criminal fine for an accountant found guilty of a willful violation of the Securities Act of 1933?

Aiding or assisting in the preparation of a false tax return is considered what kind of offense under the Internal Revenue Code?

What is the key difference between the legal privilege of communications with an attorney versus communications with an accountant under federal law?

What type of liability did the Private Securities Litigation Reform Act of 1995 introduce for accountants in most situations?

Under what circumstance can an accountant be held liable for the entire amount of a loss under the Private Securities Litigation Reform Act of 1995?

What is the penalty levied on a tax preparer for willful understatement of a client's tax liability?

In the case of Reznor v. J. Artist Management, Inc., the court found that the accountant, Szekelyi, owed a duty of care to Reznor for reports on his financial status despite Reznor not being his direct client. On what legal principle was this duty based?

What is the primary purpose of the Public Company Accounting Oversight Board (PCAOB), created by the Sarbanes-Oxley Act?

Which of the following nonaudit services is a Registered Public Accounting Firm (RPAF) permitted to perform for an audit client under the Sarbanes-Oxley Act?

What is the maximum term of imprisonment for an accountant who knowingly violates the working paper retention requirements of the Sarbanes-Oxley Act?

Under Section 18 of the Securities Exchange Act of 1934, what must a plaintiff prove to hold an accountant liable for a false statement in a document filed with the SEC?

An attorney can be held liable for malpractice if their breach of the duty of care caused the client to suffer an injury. Which of the following is an example of such a breach?

Constructive fraud can be found when an accountant is grossly negligent in performing their duties. Which scenario best illustrates constructive fraud?

What is the key provision of an incontestability clause in a life or health insurance policy?

Which of the following is NOT a required element to establish liability for fraud?

In the case *In re Disciplinary Proceedings Against Inglimo*, what was one of the key ethical violations related to Inglimo's management of client trust accounts?

Under the due diligence standard of Section 11 of the Securities Act of 1933, an accountant must show they had, after reasonable investigation, reasonable grounds to believe that the statements in a registration statement were what?

What is the maximum prison sentence for a person who aids or assists in the preparation of a false tax return under the Internal Revenue Code?

What did the 'Insight into Ethics' feature conclude regarding an auditor's duty to correct previously certified opinions?

What defense is available to an accountant under Section 18 of the 1934 Act that is not available under Section 11 of the 1933 Act?

Under the Sarbanes-Oxley Act, it is unlawful for a Registered Public Accounting Firm (RPAF) to provide auditing services to an issuer if the issuer's CEO was previously employed by the auditor and participated in the audit within what time frame?

Under the Restatement (Second) of Torts rule, an accountant's liability for negligence extends to which group of third parties?

What is the statute of limitations for bringing a private right of action for securities fraud under Section 804 of the Sarbanes-Oxley Act?

An accountant can be held liable for actual fraud if they intentionally misstate a material fact to mislead a client. What defines a 'material fact' in this context?

In addition to a fine, what is the maximum prison sentence for a willful violation of the Securities Exchange Act of 1934 under the Sarbanes-Oxley Act?

If a professional organizes their business as a Professional Corporation (P.C.) or a Limited Liability Partnership (LLP), what is the general effect on their personal liability for a colleague's malpractice?

What is the penalty for a tax preparer who aids and abets a corporation's understatement of tax liability?

To bring a successful civil action for damages under Section 11 of the Securities Act of 1933, a purchaser of a security must generally prove which of the following?

Under the Sarbanes-Oxley Act, an accountant who destroys or falsifies records with the intent to obstruct a federal investigation can be imprisoned for up to how long?

What is the primary difference in the burden of proof between a fraud claim under the Securities Act of 1933 and the Securities Exchange Act of 1934?

Under what conditions can an attorney's duty of care be held to a higher standard than that of a reasonably competent general practitioner?

What constitutes 'working papers' in the context of an accountant's services?

In the case *In re Disciplinary Proceedings Against Inglimo*, Attorney Inglimo's criminal conviction was for what offense?

What must an attorney do under their general duty of care?

Which of the following defenses is available to an accountant charged with negligence?

What is required for a third party to satisfy the 'near privity' rule established in Credit Alliance Corp. v. Arthur Andersen & Co.?

The Sarbanes-Oxley Act requires audit partner rotation, prohibiting a lead audit partner from providing services to an issuer for more than how many consecutive years?

Under Section 12(2) of the Securities Act of 1933, civil liability for fraud is based on what?

An auditor who discovers suspicious financial transactions but fails to investigate fully or inform the client can be held liable for what?

In a legal action against a professional for breach of contract, what types of damages can a client typically recover?

What is the primary reason for the existence of the attorney-client privilege?

Under what authority can state boards of accountancy impose sanctions on a CPA for misconduct, as seen in the case of Marilyn Greenen?

What is the key reason that liability for accountants under the 'reasonably foreseeable user' rule has been criticized?