1. By statute, piercing the corporate veil is also an option for a plaintiff when a limited liability company is involved. T/F

2. Which of the following would be appropriate for an accountant to use when the accountant has conducted such a limited audit that the accountant does not feel able to offer an opinion as to the accuracy of financial statements?

-Unqualified opinion

-Qualified opinion

-Disclaimer

-Warranty

3. Which of the following must be established in order to hold an accountant liable for fraud?

• That the accountant acted with specific intent meaning that, while the accountant did not intend fraud, the result of the accountants actions resulted in the client defrauding a third party.

• That the accountant acted with scienter meaning that the accountant failed to act as a reasonable accountant under the circumstances.

• That the accountant acted with specific intent meaning that the accountant intended to mislead the client or third parties.

• That the accountant acted with scienter meaning that the accountant knew of the falsity of a statement; or, when making the statement, he or she recklessly disregarded the truth.