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12 Cards in this Set
- Front
- Back
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What are the 6 types of Consulting Services?
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PAT SIC
Product services Advisory services Transaction services Staff and other support services Implementation services Consultation services |
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What are the 4 elements of negligence?
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1. Duty owed
2. Harm 3. Breach 4. Causality |
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What are the elements of actual fraud?
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MSRID
Misreprenation of material fact Scienter - intent to decieve Reliance Intent to Rely Damages |
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What are the elements of Constructive Fraud?
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MRRID
Misrepresentation Reckless disregard for truth Reliance Intent to Rely Damages |
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Who do workpapers belong to?
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CPA, not client
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What is the general rule regarding liability to third parties?
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Accountant is not liable if not in privity with third party
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What is privity?
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Contractual relationship between parties
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What is the 3rd Party Beneficiary Rule, or the Intended Beneficiary Rule?
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-accountants are liable for negligence when they know or should have known a third party would rely on their work
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What is the Ultramares doctrine?
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accountant only liable to a third party for negligence if specific identity of third party is known
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If they didn't rely on the f/s, can third parties still sue the CPA?
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Yes
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What are the 2 dates a CPA must show due diligence?
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1. Filing of registration statement
2. Effective date |
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Under 1934, is negligence a factor in accountant's liability?
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NO
must prove scienter - intent to deceive |
