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Forensic Accounting Questions | Homework Help Websites

2- Distinguish between common-law liability and statutory liability for auditors. What is the basis for the difference in liability?

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3- Is there a conceptual difference between an error and negligence from a reasonable care perspective? Give examples of each in your response.

5- Do you think that the provision of nonaudit services for a client with a failed audit is evidence of negligence? Explain.

6- Explain the legal basis for a cause of action against an auditor. What are the defenses available to the auditor to rebut such charges? How does adherence to the ethical standards of the accounting profession relate to these defenses?

7- Assume a third party such as a successor audit firm quickly discovers a fraud that the predecessor external auditor has overlooked for years. Do you think this provides evidence supporting scienter? Explain.

16- Business ethics is about managing ethics in an organizational context and involves applying principles and standards that guide behavior in business conduct. According to IFAC, “The decisions and behaviors of accountants should reinforce good governance and ethical practices, develop and promote an ethical culture, foster trust and transparency, bring credibility and value to decision making, and present a faithful picture of organizational health to stakeholders.” Explain how accountants and auditors can meet these expectations in a global environment and protect the public interest.

17- How do Gray’s accounting values establish a basis for financial reporting in countries with different cultural systems?

18- What are the costs and benefits of establishing one set of accounting standards (i.e., IFRS) around the world? How do cultural factors, legal systems, and ethics influence your answer? Apply a utilitarian approach in making the analysis.

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