Ricardo, an accountant, contracts to conduct an audit for Sensei Sushi Restaurants. In performing the audit, Ricardo fails to detect certain misconduct. Ricardo is most likely
A) liable if a normal audit would have revealed the misconduct
B) liable if Ricardo issues a specifically qualified opinion.
C) not liable if Ricardo generally disclaims any liability.
D) not liable if the misconduct was due to Sensei Sushi's negligence.
A
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The comment that "items that are not material may be recorded in the financial statements in the most economical and expedient manner possible" is representative of:
a. matching. b. conservatism. c. realization. d. materiality. e. None of the answers are correct.
Explain the utilitarian perspective of manipulation.
What will be an ideal response?
Suppose that you work for a lawyer who is just starting his or her practice. What would you do to ensure that the attorney has a presence on the Internet?
What will be an ideal response?
The following exchanges occurred via fax: ? Buyer, Day 1 - "I offer to buy (legal description of property) for $350,000." Seller, Day 2 - "I will sell (legal description of property) for $375,000." Buyer 2, Day 3 - "I will buy (legal description of property) for $380,000." Seller, Day 3 (later) - "I accept your offer of $380,000." Buyer 1, Day 3 (even later) - "I accept your counter offer of
$375,000." A)?The seller has a contract with Buyer 2 B)The seller has a contract with Buyer 1 C)?The seller has a contract with both Buyer 1 and Buyer 2 D)?The use of fax communications does not satisfy the statute of frauds