Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 4, Problem 31OQ
Match the important cases listed below with the appropriate legal precedent or implication.
Case:
- a. Hochfelder v. Ernst
- b. Escott v. BarChris Construction Corp.
- c. Credit Alliance v. Arthur Andersen & Co.
- d. Ultramares v. Touche & Co.
- e. Rosenblum v. Adler
- f. Rusch Factors, Inc. v. Levin
- g. United States v. Simon (Continental Vending)
Legal precedent or implication:
- 1. A landmark case establishing that auditors should be held liable to third parties not in privity of contract for gross negligence, but not for ordinary negligence.
- 2. A case in which the court used the guidance of the Second Restatement of the Law of Torts to decide the auditors’ liability to third parties under common law.
- 3. A landmark case in which the auditors were held liable under Section 11 of the Securities Act of 1933.
- 4. A case in which auditors were held liable for criminal negligence.
- 5. A case that established that auditors should not be held liable under the Securities Exchange Act of 1934 unless there was intent to deceive.
- 6. A case that established the precedent that auditors should be held liable under common law for ordinary negligence to all foreseeable third parties.
- 7. A common law case in which the court held that auditors should be held liable for ordinary negligence only to third parties they know will use the financial statements for a particular purpose.
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Chapter 4 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - Prob. 10RQ
Ch. 4 - Prob. 11RQCh. 4 - Prob. 12RQCh. 4 - Prob. 13RQCh. 4 - Prob. 14RQCh. 4 - Prob. 15RQCh. 4 - Prob. 16RQCh. 4 - Prob. 17RQCh. 4 - Prob. 18RQCh. 4 - Prob. 19RQCh. 4 - Prob. 20QRACh. 4 - Prob. 21QRACh. 4 - Prob. 22QRACh. 4 - Prob. 23QRACh. 4 - Prob. 24QRACh. 4 - Prob. 25QRACh. 4 - Prob. 26QRACh. 4 - Gordon Moore, CPAs, were the auditors of Fox ...Ch. 4 - Prob. 28AOQCh. 4 - Prob. 28BOQCh. 4 - Prob. 28COQCh. 4 - Prob. 28DOQCh. 4 - Prob. 28EOQCh. 4 - Prob. 28FOQCh. 4 - Prob. 28GOQCh. 4 - Prob. 28HOQCh. 4 - Prob. 28IOQCh. 4 - Prob. 28JOQCh. 4 - Prob. 28KOQCh. 4 - Prob. 28LOQCh. 4 - Prob. 29OQCh. 4 - Prob. 30OQCh. 4 - Match the important cases listed below with the...Ch. 4 - Prob. 32OQCh. 4 - For each definition (or portion of a definition)...Ch. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Charles Worthington, the founding and senior...Ch. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41ITCCh. 4 - Prob. 42RDC
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