Under Section 11 of the Securities Act of 1933, which of the following standards may a CPA use as a defense?
A. Generally accepted auditing standards and generally accepted fraud detection standards.
B. Generally accepted auditing standards but not generally accepted fraud detection
standards.
C. Generally accepted fraud detection standards but not generally accepted auditing
standards.
D. Neither generally accepted auditing standards nor generally accepted fraud detection
standards.
B. Generally accepted auditing standards but not generally accepted fraud detection
standards.
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Explain what costs are included in the acquisition cost of operating assets
One common problem with the current ratio is that it is susceptible to "window dressing." If prior to the end of the accounting period Saxon Company has a current ratio of 1.5 and management wishes to boost its current ratio it may decide to
a. pay off accounts payable prior to year end. b. purchase more inventory on account. c. purchase short-term investments with cash. d. purchase more inventory with cash.
Explain how a firm might use a special purpose entity (SPE) to subvert the standard-setting process.
What will be an ideal response?
A planning report is a ______ of the MRP process.
A. primary output B. secondary output C. primary input D. secondary input