A CPA Who Fraudulently Performs an Audit of a Corporation's

question 61

Multiple Choice

A CPA who fraudulently performs an audit of a corporation's financial statements will

• A) Probably be liable to any person who suffered a loss as a result of the fraud.
• B) Be liable only to the corporation and to third parties who are members of a class of intended users of the financial statements.
• C) Probably be liable to the corporation even though its management was aware of the fraud and did not rely on the financial statements.
• D) Be liable only to third parties in privity of contract with the CPA.

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Definitions:

Average Arrival Rate

In queuing theory, the average number of units (customers, items, etc.) arriving at a service point or system per unit time.

Average Service Rate

A measure of how quickly a service provider or system can perform its intended function, typically evaluated over a period to assess efficiency.

Average Service Time

The average duration needed to complete a particular service or process.

M/M/S

A queuing model notation representing a system with exponential service times, exponential interarrival times, and S servers.