A CPA's duty of due care to a client most likely be breached when a CPA

What needs to be proven in order to find an accountant liable for negligence? Explain the four elements.

What does a third-party user of financial statements have to prove under common law in a suit against an auditor for the auditor's negligence? Explain each item with an example

What defenses are available to auditors against suits brought by clients under common law? Against suits brought by third parties under common law?

The following table reports (in millions) earnings, dividends, capital expenditures, and R&D for Intel for the period 1990–95:   Capital YearNet IncomeDividendsExpendituresR&D1990$650$0$680$5171991819094861819921,067431,22878019932,295881,93397019942,2881002,4411,11119953,5661333,5501,296What are the dividend payout rates for Intel during these years? Is this payout policy consistent with the factors expected to drive dividend policy, as discussed in the chapter? What factors do you expect would lead Intel’s management to increase its dividend payout? How do you expect the stock market to react to such a decision?   

An action in tort is brought by the district attorney.

The standard of care for professionals is:   A. lower than that of general liability exposures   B. not a relevant issue in determining liability insurance   C. higher than that of general liability exposures   D. the same as general liability exposures

A lawsuit is an example of a contingent liability for the defendant. O True False

A practitioner may offer a(n)________________after receiving a pre-allegation letter in order to prevent disciplinary proceedings from moving forward. A. affirmative defence B. rebuttal testimony C. contra-complaint letter D. consent to

Which of the following is not a general standard that applies to CPA client services?a. Client interestb. Due professional carec. Professional competenced. All of the above are general standards applicable to CPA client services