Answered: The communications between CPAs and…

Business

Accounting

The communications between CPAs and their clientse are privileged underfederal law. True or False?

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter5: Business And The Constitution

Section5.3: Constitutional Limitations Of Economic Regulations

Problem 2.2CQ

See similar textbooks

Related questions

Q: Why is the concept of independence such an internal part of AICPA Code?

A: AICPA is American Institute of Certified Public Accountants, which is the leading organisation and…

Q: T F There is added protection for whistle-blowerswho report violations of the Sarbanes–Oxley Act.

A: People who report violation to Sarbanes Oxley Act are protected as per law under Section 806 of SOX

Q: Which is the primary source of SEC independence rules?

A: The primary source of SEC independence rules is Rule 2-01 Rule 3526 deals with the communication…

Q: What are disadvantages of external private audit?

A: External Audit refers to independent examination of financial statements of the organisations. These…

Q: Who can sue the auditor? how they can sue the auditor. Explain.

A: An auditor is a person or an entity (if the auditor is a firm), who is authorized and assigned/hired…

Q: How does the auditor’s opinion differ between scope limitationscaused by client restrictions and…

A: The auditor's opinion might be competent by scope limitations brought about by client limitations or…

Q: What red flags did the auditors miss in the Parmalat case? Please be specific.

A: Given: The missed red flags by the auditors in the Parmalat case.

Q: Which of the following is NOT an antitrust law? the FTC Act the Smoot-Hawley Act the Robinson-Patman…

A: Antitrust law: It is a collection of federal and state government laws that regulate the conduct and…

Q: What is the auditor's obligation in light of the prudent person concept?

A: An auditor is a person who reviews the financial statements of a company and gives his opinion. The…

Q: advantages of external private audit?

A: External Private audit: An independent review and investigation of financial statements which are…

Q: What is the parol evidence rule, and what is the court’s reasoning in applying the rule? List and…

A: The Parol evidence rule is a doctrine of contract law that prevents parties to a written contract…

Q: Which of the following statements is true when assessing whether potential voting rights contribute…

A: 1) When assessing whether or not possible voting rights assist control? All facts and situations…

Q: What are threats and safeguards to independence?

A: American Institute of Certified Public Accountants (AICPA): It is an association of certified…

Q: what are the key practical differences between common-law liability and statutory liability for…

A: Judges' legal decisions in determining cases give emergence to common law liability. These decisions…

Q: What should a MNC do to prevent bribery?

A: Bribery is the act of giving or receiving something of value in exchange for some kind of influence…

Q: Which common law approach leads to increased CPA liability to "foreseeable" third parties for…

A: CPA is liable to conduct the professional accounting work. He would be responsible for any…

Q: What are the Safeguards to independence?

Q: Positive laws are passed and promulgated by competent and legitimate

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: In which of the following instances does Entity A have control over Entity B?

A: An entity controls the other entity when it has an existing right that gives a current ability to…

Q: A court will uphold any agency rule making decision so long as the agency at issue did not exceed…

A: Agency decision refers to the final order to the decision or the determination of the administrative…

Q: What are some of the advantages and disadvantages of permitting auditors to provide nonaudit…

A: Advantages to provide non-audit services to the clients are listed as follows: Facilitation in…

Q: What are the rights and duties of the CPA? What obligation does the CPA have to a user of the…

A: Duties of CPA: Auditing and maintaining the financial records of the company Creating and Analyzing…

Q: Discuss and identify factors which indicate Non-Compliance with Laws and regulation.?

A: Non-compliance is an act of commission or ommission by the organisation that is not in accordance…

Q: What elements does a plaintiff have to prove to be successful in a case against a negligent…

A: In the case of negligence if the plaintiff wants to sue the defendant for damages incurred…

Q: In your words, what is the legal responsibility of the auditor?

A: Auditors are the authorized individual to examine the financials or accounts of the companies and…

Q: Are there sufficient internal and external controls in government operations?

A: It is important to implement both internal as well as external control over company's operations…

Q: How would an auditor communicate known there are violations of the law and the auditor's…

A: Audit is the process in which auditor independently examined the financial information of any type…

Q: How does the principle of vicarious liability affect the principal/agent relationship? What is the…

A: Agent Definition: A person who has been empowered to act on behalf of another person/entity, that…

Q: In the Framework, it is possible that an entity may not disclose relevant information. Why?

A: The <IR> Framework is the International Integrated Reporting Framework, which presides over…

Q: What are typical difficulties in ascertaining whether control exists where perhaps no voting…

A: Controlling interest is the amount shareholders are entitles to receive who are major shareholders…

Q: What types of actions may an auditor be liable to a client under common law? Why would the clients…

A: Auditor liability is becoming more of a concern, not just in terms of audit quality and the…

Q: s cannot contravene, much less overrid

A: The answer has been mentioned below.

Q: Do you believe that the SEC should prohibit auditors from providing all nonaudit services for audit…

A: Auditing: Auditing refers to an independent examination of financial information of any…

Q: What defenses are available to auditors against suits brought by clients under common law? Against…

A: Under common law, clients can bring suits against the auditors and there are various defenses…

Q: What are some civil and criminal consequences if CPAs/auditors fail to follow professional…

A: The CPA may be held liable to financial users for any fraud and/or intentional deceit committed. Any…

Q: Who is an agent and what are the duties of an agent? How does the principle of vicarious liability…

A: Agent Definition: A person who has been empowered to act on behalf of another person/entity, that…

Q: What is the auditors responsibility regarding the noncompliance with laws by a client?

A: Audit: It is an inspection of the financial statements of the company. It is mandatory for every…

Q: It is a well-established principle that the contents of the bylaws that contravene the Constitution…

A: In case any contradiction between the provisions of bylaws that conventene rhe constitution is viod.…

Q: What kind of actions might customers pursue against auditors under the common law doctrine of…

A: Given: Per common liability law, customers may file a lawsuit against auditors for breach of…

Q: Has the accounting profession created a situation in which auditors’ ethical behavior is impaired by…

A: Legal liability of an auditor is to give a proper audit report to his clients by keeping his ethical…

Q: What are the implications of the cautious person notion for the auditor's legal responsibility?

A: This question explains about the implications of the cautious person notion for the auditor's legal…

Q: Do you believe the internal audit activity should be independent? Explain.

Question

The communications between CPAs and their clientse are privileged underfederal law. True or False?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

he communications between CPAs and their clients are privileged under federal law. True or False
Under what circumstances can a CPA be paid on a commission basis? Why do you think the regulation impose these restrictions?
Explain when exculpatory agreements, agreements involving the commitment of a tort, and agreements involving public officials will be held to be illegal.
Which of the following factors is not an example of a risk relevant to the client continuance decision? a. Client entity characteristics. b. Independence risk factors. c. Third-party/due diligence risk factors. d. Advocacy threat.
What are the consequences for a CPA who commits an Act Discreditable?
What is the auditor's role when a client fails to follow the law?
Which of the following would be considered a self-interest threat? When a member of the assurance team was previously a director or officer of the assurance client Acting as the client’s advocate in a legal proceeding Potential employment with an assurance client A member of the assurance team has a close family member who is a director or officer of the assurance clientWhich of the following would be considered a self-interest threat? When a member of the assurance team was previously a director or officer of the assurance client Acting as the client’s advocate in a legal proceeding Potential employment with an assurance client A member of the assurance team has a close family member who is a director or officer of the assurance client
What types of actions may an auditor be liable to a client under common law? Why would the clients prefer to sue the auditor for tort action rather than a breach of contract?