Which of the Following Is a True Statement About What

question 23

Multiple Choice

Which of the following is a true statement about what consumers want compared to what they usually get in terms of customer service?

• A)The first thing they want is their money back
• B)There is a wide gap between what customers want and what they get
• C)They want to be able to submit negative product reviews

Understand the legal liability of accountants and auditors in the professional practice.

Identify the conditions under which a CPA can be held liable for negligence, fraud, and scienter.

Distinguish between different legal doctrines and rules (e.g., Ultramares rule, Restatement (Second) of Torts) that affect accountant liability.

Recognize the role of privity of contract and the impact of third-party users on accountant's liability.

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Definitions:

Contingency-Fee Agreements

Legal service contracts where the attorney's payment depends on the outcome of the case, typically receiving a percentage of the settlement or judgment.

Divorce Cases

Legal proceedings that terminate a marriage agreement between two individuals and address related issues such as asset division and custody.

Probate Cases

Legal proceedings that involve the administration of a deceased person's estate, including the validation of wills, distribution of assets, and resolution of any disputes.

Double Billing

Billing more than one client for the same billable time period.