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12 Cards in this Set

  • Front
  • Back
What are the 6 types of Consulting Services?
PAT SIC
Product services
Advisory services
Transaction services
Staff and other support services
Implementation services
Consultation services
What are the 4 elements of negligence?
1. Duty owed
2. Harm
3. Breach
4. Causality
What are the elements of actual fraud?
MSRID

Misreprenation of material fact
Scienter - intent to decieve
Reliance
Intent to Rely
Damages
What are the elements of Constructive Fraud?
MRRID

Misrepresentation
Reckless disregard for truth
Reliance
Intent to Rely
Damages
Who do workpapers belong to?
CPA, not client
What is the general rule regarding liability to third parties?
Accountant is not liable if not in privity with third party
What is privity?
Contractual relationship between parties
What is the 3rd Party Beneficiary Rule, or the Intended Beneficiary Rule?
-accountants are liable for negligence when they know or should have known a third party would rely on their work
What is the Ultramares doctrine?
accountant only liable to a third party for negligence if specific identity of third party is known
If they didn't rely on the f/s, can third parties still sue the CPA?
Yes
What are the 2 dates a CPA must show due diligence?
1. Filing of registration statement
2. Effective date
Under 1934, is negligence a factor in accountant's liability?
NO
must prove scienter - intent to deceive