Jentz 11e-IM-Ch51 - Chapter51 Title BusLawSeal.eps Creator...

Info icon This preview shows pages 1–3. Sign up to view the full content.

Chapter 51 Professional Liability and Accountability    See separate Lecture Outline System I NTRODUCTION This chapter gives an overview of the standards imposed on accountants and auditors, as well as other professionals, and should be of great interest to students planning to sit for the Certified Public Accountant (CPA) exam.  Professionals have found themselves increasingly subject to liability over the past decade.  The legal responsibility of auditors, in particular, has been a subject in recent cases and legislation, which this chapter discusses, and any changes in this liability in your jurisdiction should be brought to the attention of those students who may be preparing for a career in accounting.  This chapter considers the potential common law  liability  of professionals  to   clients  and  to  third  persons,   the   potential  liability  of  accountants  under securities laws and the Internal Revenue Code, and the relationship of professionals with their clients. A DDITIONAL  R ESOURCES 241
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

242           INSTRUCTOR’S MANUAL TO ACCOMPANY  BUSINESS LAW , ELEVENTH EDITION A UDIO  & V IDEO  S UPPLEMENTS The following  audio and video supplements  relate to topics discussed in this chapter— PowerPoint Slides To highlight some of this chapter’s key points, you might use the Lecture Review PowerPoint slides compiled for Chapter 51. South-Western’s Business Law Video Series The situational video  CPA  may be of interest to your students in their coverage of the topics in this chapter. C HAPTER  O UTLINE I. Potential Liability to Clients The text discusses professionals’ potential liability for breach of contract, negligence, or fraud. A. L IABILITY   FOR  B REACH   OF  C ONTRACT A professional owes a duty to his or her client to honor the terms of their contract and to perform the contract within the stated time period. If the professional fails to perform, he or she may be held liable for expenses incurred by the client to secure another professional to provide the services, for penalties imposed on the client for failure to meet time deadlines, and so on. B. L IABILITY   FOR  N EGLIGENCE All professionals are subject to standards of conduct established by codes of professional ethics, by state statutes, and by judicial decisions.  In their performance of contracts, professionals must ex- ercise the established standard of care, knowledge, and judgment generally accepted by members of their professional group.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '09
  • Gough
  • Business Law, Accountant, ........., ACCOMPANY BUSINESS LAW

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern