Hark,CPA,negligently Failed to Follow Generally Accepted Auditing Standards in Auditing

question 27

Multiple Choice

Hark,CPA,negligently failed to follow generally accepted auditing standards in auditing Long Corporation's financial statements.Long's president told Hark that the audited financial statements would be submitted to several,at this point undetermined,banks to obtain financing.Relying on the statements,Third Bank gave Long a loan.Long defaulted on the loan.In jurisdiction applying the Ultramares decision,if Third sues Hark,Hark will:

• A)Win because there was no privity of contract between Hark and Third.
• B)Lose because Hark knew that a bank would be relaying the financial statements.
• C)Win because Third was contributory negligent in granting the loan.
• D)Lose because Hark was negligent in performing the audit.

Comprehend the procedural aspects of filing for bankruptcy under different chapters.

Identify the eligibility criteria for filing under various bankruptcy chapters.

Analyze the impact and outcomes of filing for different bankruptcy chapters from both debtor and creditor perspectives.

Assess the role and responsibilities of trustees in the bankruptcy process.

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Definitions:

Right Hemisphere

Refers to the right half of the brain, associated with spatial abilities, face recognition, visual imagery, and the processing of music.

Broca's

Refers to Broca's area, a region in the frontal lobe of the dominant hemisphere of the brain linked to speech production and language processing.

Wernicke's

Referring to Wernicke's area, a region in the brain's left hemisphere involved in language comprehension.

Speaking

The act or process of expressing or conveying thoughts, opinions, or information verbally.