Auditors can be held liable under two classes of law when sued by clients, investors, creditors, or the government. Identify and briefly explain both classes of law.
What will be an ideal response?
Common law includes case law developed over time by judges who issue legal opinions when deciding a case (the legal practices announced in these cases become precedent for judges deciding similar cases in the future).
Statutory law includes written law enacted by the legislative branch of federal and state
governments that establishes certain courses of conduct that must be adhered to by covered parties.
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You may perform regression analysis, using your XL Data Analyst by the command: Relate—Regression
Indicate whether the statement is true or false
If an analyst wants to value a potential investment in the net operating assets of a division of another firm, the analyst should discount the projected free cash flows at the
a. cost of debt capital b. cost of equity capital c. weighted average cost of capital d. risk free rate
Virtual worlds are online applications that let users interact with one another and create and use objects. Recently, virtual world applications have been introduced for business. One example of a real-life application in a virtual environment would be to simulate disasters such as hurricanes or floods. Relating to the case, what other activities could businesses use virtual worlds for?
What will be an ideal response?
Which of the following is an effective means of notice to purchasers of shares that there are restrictions on the sale?
A) notation in the bylaws B) resolution of the shareholders at a shareholders' meeting C) notation on the stock certificate D) resolution of the directors at a directors' meeting