Which of the Following Is True Regarding the Liability of Accountants

question 8

Multiple Choice

Which of the following is true regarding the liability of accountants under the law of Canada?

• A) Canadian law is well settled in relation to an accountant's liability to nonclients.
• B) Canadian law does not recognize liability of an auditor in relation to a prospectus distributed with the auditor's filed consent by an issuer of securities containing misrepresentations.
• C) Canadian law does not recognize liability on the part of an auditor for misrepresentations made in secondary-market disclosures made with the auditors' written consent.
• D) As in the U.S., in Canada the common law holds accountants liable for negligence to clients.
• E) In Quebec alone, accountants may not be held liable even if a causal link between fault and damage is established.

Recognize the practical applications and limitations of intelligence tests in educational and occupational settings.

Grasp the role of environmental and hereditary factors in the development of intelligence.

Understand the impact of managerial decisions on a firm's inventory and cash management.

Analyze how various financial activities affect a firm's cash flow.

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Definitions:

Substantial Property

Significant assets or real estate owned by an individual or entity.

Colonizing Mission

Efforts or expeditions undertaken by a country to establish control over new territories, often involving settlement and economic exploitation.

Lucas Vasquez de Allyón

A Spanish explorer who, in the early 16th century, attempted to establish a colony in what is now the southeastern United States, notable for his efforts to create a settlement in present-day South Carolina.

Legal System

The comprehensive system of rules and principles, enforced by institutions, which governs a society.