1. Which one of the elements is necessary to hold a CPA liable to a client for negligently conducting an audit?
a. Acted with scienter.
b. Was a fiduciary of the client.
c. Failed to exercise due care.
d. Executed an engagement letter?
2. Which of the following penalties is usually imposed against an auditor who breaches contract duties owed to a client in the performance of audit services?
a. Money damages
b. Punitive damages
c. Specific performance
d. Both (a) and (c)
e. All of the above
3. Which of the following professional requirements help to assure auditor independence?
a. Partner rotation
b. Prohibition of non-audit services
c. Restrictions on permitted non-audit services
d. Auditor independence programs
e. All of the above