Under the common law, a plaintiff must prove a number of elements to establish an accountant's liability for breach of contract. Which of the following statements the plaintiff does not have to prove? Group of answer choices The client suffered damages The accountant's breach of duty is a legal cause of the injury suffered by the client The accountant acted without malice The accountant owes a duty to her client The accountant breach the duty owed
Added by James P.
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These typically include: - The existence of a duty owed by the accountant to the client. - A breach of that duty by the accountant. - Causation, meaning the breach caused the damages suffered by the client. - Actual damages suffered by the client. Show more…
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A plaintiff may elect to bring a lawsuit against auditors under applicable statutes-including the Securities Act of 1933 and the Securities Exchange Act of 1934-and under common law. For each circumstance, indicate the most likely source of CPA liability by placing the appropriate letter in the third column. A. The Securities Act of 1933 B. The Securities Exchange Act of 1934 C. Common Law Explain what the plaintiff has to prove to win and the defense the defendant (auditor) has to prove to avoid liability. Circumstance: A CPA's client is filing suit for negligence in performing an audit. A stockholder of a publicly-held company who purchased the stock from another investor is filing suit for losses sustained on the stock. A bank that lent money to a company is filing suit for misleading financial statements that were audited by the CPA. An investor is filing suit for losses sustained in the purchase of publicly-traded bonds that were bought from the company upon initial registration. A stockholder who purchased stock of a public company in an initial public offering is filing a suit for losses sustained in the purchase of the stock. ACRA's client is filing suit for losses sustained for errors in a tax return prepared by the CPA. A supplier who prepared credit to the CPA's publicly-held client is filing suit for losses sustained when the client could not pay the account. An investor who purchased a corporate bond from another investor on the New York Stock Exchange is filing suit to recover losses.
Akash M.
Which of the following is false regarding legal liability? A The Ultramares doctrine proved absence of causal connection. B The Securities Act of 1933 deals only with the reporting requirements for companies issuing new securities. C The lack of duty to perform the service means that the CPA firm claims that there was no implied or expressed contract. D The Sarbanes-Oxley Act greatly increases the responsibilities of public companies and their auditors.
Supreeta N.
Hayes, a real estate broker, offers to sell Invers's property at no charge. Hayes negotiates a sale to Jed but negligently fails to complete the deal. The broker is most likely liable to the seller for: a. an accounting. b. negligence. c. nothing. d. breach of contract.
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