Cpa Review- Law

Front 1

What is an Agency Coupled with an interest?

Is it revocable?

Back 1

one in which the agent has specific, present, beneficial interest in a property which is subject matter to the agency.
This is irrevocable.

Front 2

Statue of limitations under Section 11 must be commenced..

Back 2

before the earlier of
1. 3 yrs after security was offered.
2. one yr after misstatement was or should have been discovered.

Front 3

Defenses under section 11 of the Securities act of 1933

Back 3

1. no misstatement or omission.
2. no material facts
3. plantiff knew of the misstatements
4. accountant exercised due dilligence.
5. plantiffs loss not caused by misstatement
6. statue of limitation expired.

Front 4

Client suing for negligence must establish..

Back 4

1. accountant owed a duty
2. he breached this duty
3. breach caused injury
4. client suffered damages

Front 5

Elements of a contract

Back 5

offer
acceptance
consideration
competent parties
legal purpose

Front 6

Defenses to fraud

Back 6

Creditable evidence that accountant can introduce to disprove on of the elements of fraud that the plantiff must prove.

Front 7

Contracts that must be in writing

Back 7

Noted by using the words "MYLEGS" to trigger memory.
M=marriage
Y=Year (can't be preformed in 1 year or less)
L=Land
E=contracts made by an executor.
G=Goods over $500
S=Surety contracrs

Front 8

Defenses to negliegence

Back 8

1. alleged duty not owed
2. no breach (you exercised due care)
3. no loss
4. loss caused by parties own negliegence.
5. loss was not reasonably foreseeable.
6. effective disclaimer

Front 9

Client suing for fraud must prove

Back 9

1. accountant made misrepresentation.
2. scienter (knowingly)
3. material fact
4. misrepresentation induced reliance.
5. justified reliance.
6. loss

Front 10

Priority claims in order of rank.

Back 10

1. administrative exp.
2. tradespeople- who extend unsecured credit in ordinary course of business after the filing of involuntary petition but before trustee appointed.
3. wages owed to employees maximum $4300.
4. contributtions to employee benift plans.
5. claims for grain or fish up to $4300
6. deposits made by consumers up to $1950
7.alimony
8. fed, state, local taxes

Front 11

Civil liability under the Securities Exchange Act of 1934.

Back 11

Liability is limited to purchasers and sellers of securities.
Plantiff must prove misstatement of a material fact, reliance, and loss.

Front 12

Civil liability under Securities act of 1933

Back 12

For accountant to be civilly liable the Statements must include
1.a misstatement or ommission of a material fact.
2. loss after purchasing the securties.

Front 13

Under section 10b of the antifraud provision of the 1934 act what does a plantiff need to prove?

Back 13

1. misstatement/omission
2. its conncection with the securites sale or purchase.
3.scienter (accountant intent to decieve)
4. Reliance on the misstatement.
5. Loss caused by reliance.

Front 14

General creditors rights

Back 14

Last to be paid if money remains.

Front 15

Secured creditors rights

Back 15

These are paid first and in full if the collateral is sufficient.
If collateral not sufficient, then the secured creditor is a general creditor as to the deficency.

Front 16

Priority creditors rights

Back 16

They are next in line for payment and bankruptcy code gives them priority over general creditors.

see classes of priority flash card

Front 17

Three types of involved for distribution of debtors estate under bankruptcy.

Back 17

1 secured
2 priority creditors (unsecured creditors)
3 general creditors (other unsecured creditors)

Front 18

Contractual defenses to breach of contract

Back 18

1. no consideration
2. alleged obligation not within scope of contract.
3. full or substantial performance rendered.
4. illegal purpose.
5. client breached conract first.
6. failure of a condition precedent.

Front 19

Under fraud liability you are liable to.....

Is privity required?

Back 19

All foreseeable users of the work product. Privity is not required.

Front 20

Statute of limitations under section 10 or 18

Back 20

plantiff must bring suit one year after discovering the facts or 3 yrs after the time the cause of action rose.

Front 21

Under Securities act of 1933 the plaintiff need not prove what?

Back 21

reliance
negliegence
fraud

Accountant is prima facie liable for misstatements.