L22 Notes_Part_5 - SEC Act of 1933 SEC Act of 1934 Contract...

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Auditor Defenses – client lawsuits No responsibility or duty of care Absence of negligence or misstatement contributory negligence by client Lack of reliance or causal connection
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Law Common Law Statutory Law Civil Law (Action against another) Preponderance of the evidence Criminal Law (Actions against Society) Beyond a reasonable doubt Intentional •Assault & Battery •Slander •Libel •Trespass •Fraud Punitive damages Unintentional (negligence) Extent of Carelessness Ordinary Gross (willful and wonton recklessness) Damages to make injured party whole again Uniform Securities Act FCPA 1977 Mail Fraud False Statement Statute RICO
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Unformatted text preview: SEC Act of 1933 SEC Act of 1934 Contract Law Tort Law Common Law (civil): Liability to Clients Tort Law 2. Tort Law - A tort is a wrongful act that injures another person's property, body, or reputation. a. reasons for suit i. punitive damages ii. types of suits (e.g., late tax returns, underpayment of estimated tax, failure to detect fraud, bad advise on tax or MAS) b. ex: 1136 Tenants case i. even in compilations, auditors have a duty to inform client of known wrongdoing or suspicious activities ii. W|P's did indicate some audit tests were performed iii. results: - strong recommendation for engagement letters - SSARS established...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L22 Notes_Part_5 - SEC Act of 1933 SEC Act of 1934 Contract...

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