Chapter05 Legal Liability(审计学英文版)概要1.pptVIP

Legal Liability Chapter 5 Learning Objective 1 Understand the litigious environment in which CPAs practice. Changed Legal Environment Learning Objective 2 Explain why the failure of financial statement users to differentiate among business failure, audit failure, and audit risk has resulted in lawsuits. Business Failure, Audit Failure, and Audit Risk Business Failure, Audit Failure, and Audit Risk Business Failure, Audit Failure, and Audit Risk Business Failure, Audit Failure, and Audit Risk Learning Objective 3 Use the primary legal concepts and terms concerning accountants’ liability as a basis for studying legal liability of auditors. Legal Concepts Affecting Liability Legal Terms Affecting CPAs’ Liability Legal Terms Affecting CPAs’ Liability Legal Terms Affecting CPAs’ Liability Four Major Sources of Auditors’ Legal Liability Learning Objective 4 Describe accountants’ liability to clients and related defenses. Liability to Clients Auditor’s Defenses AgainstClient Suits Learning Objective 5 Describe accountants’ liability to third parties under common law and related defenses. Liability to Third Parties Under Common Law Foreseen Users Auditor Defenses AgainstThird-Party Suits Learning Objective 6 Describe accountants’ civil liability under the federal securities laws and related defenses. Securities Act of 1933 Securities Exchange Act of 1934 Auditor Defenses – 1934 Act SEC Sanctions SEC Sanctions Racketeer Influenced andCorrupt Organization Act Foreign CorruptPractices Act of 1977 Learning Objective 7 Specify what constitutes criminal liability for accountants. Criminal Liability Sarbanes-Oxley Act Learning Objective 8 Describe what the profession and the individual CPA can do and what is being done to reduce the threat of litigation. The Profession’s Responseto Legal Liability The Profession’s Responseto Legal Liability Protecting Individual CPAsfrom Legal Liability Protecting Individual CPAsfrom Legal Liability Protecting Individual CPAsfrom Legal Li