·   Question 12 out of 2 pointsTo succeed in an action against the auditor, the client must be able to show that:   ·   Question 22 out of 2 pointsA common way for a CPA firm to demonstrate a lack of duty to perform is by use of a(n):   ·   Question 32 out of 2 pointsThe standard of due care to which the auditor is expected to adhere to in the performance of the audit is referred to as the:   ·   Question 42 out of 2 pointsWhile the Foreign Corrupt Practices Act of 1977 remains in effect, its internal control provisions have been largely superseded by which of the following?   ·   Question 52 out of 2 pointsThe principal issue to be resolved in cases involving alleged negligence is usually:   ·   Question 62 out of 2 pointsIn the performance of an audit, a CPA:   ·   Question 72 out of 2 pointsLaws that have been passed by the U.S. Congress and other governmental units are:   ·   Question 82 out of 2 pointsAn individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:   ·   Question 92 out of 2 pointsA broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of:   ·   Question 102 out of 2 pointsA CPA is subject to criminal liability if the CPA:   ·   Question 112 out of 2 pointsWhich of the following most accurately describes fraud?   ·   Question 122 out of 2 pointsThe assessment against a defendant of the full loss suffered by a plaintiff regardless of the extent to which other parties shared in the wrongdoing is called:   ·   Question 132 out of 2 pointsIn connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:   ·   Question 142 out of 2 points”Absence of reasonable care that can be expected of a person in a set of circumstances” defines:   ·   Question 152 out of 2 pointsThe assessment against a defendant of that portion of the damage caused by the defendant’s negligence is called:   ·   Question 162 out of 2 pointsFraudulent financial reporting is most likely to be committed by whom?   ·   Question 172 out of 2 points”The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered.” This is an example of:   ·   Question 182 out of 2 pointsIf a client has violated federal tax laws:   ·   Question 192 out of 2 pointsWhich of the following statements is the most correct regarding errors and fraud?   ·   Question 202 out of 2 pointsThe essence of the attest function is to:   ·   Question 212 out of 2 pointsThe responsibility for the preparation of the financial statements and the accompanying footnotes belongs to:   ·   Question 222 out of 2 pointsWhen dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor: ·   Question 232 out of 2 pointsThe concept of reasonable assurance indicates that the auditor is:   ·   Question 242 out of 2 pointsManagement assertions are:   ·   Question 252 out of 2 pointsThe auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.   ·   Question 262 out of 2 pointsWhich of the following is the auditor least likely to do when aware of an illegal act?   ·   Question 272 out of 2 pointsAuditors accumulate evidence to:   ·   Question 282 out of 2 pointsIf the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:   ·   Question 292 out of 2 pointsWhen an auditor believes that an illegal act may have occurred, the auditor should first:   ·   Question 302 out of 2 pointsAn audit must be performed with an attitude of professional skepticism. Professional skepticism consists of two primary components: a questioning mind and: