1. Given the litigious environment in which CPAs practice, describe the issues surrounding an accountants legal liability (based on statute and common law) and apply these issues to specific legal situations.

2. Given the internal controls used by a business entity, evaluate the effectiveness of such controls by identifying their strengths and weaknesses, and determine their effect on performing an audit.

3. Given that audit objectives are the basis for conducting an audit, use the objectives to select the audit tests to be completed and identify the extent and timing of such tests.