7. Which of the following is false regarding legal cases discussed in text? a. Bily v. Arthur Young did not uphold the restatement doctrine. b. United States v. Natelli sentenced two CPAs with criminal liability under the 1934 act. C. Ultramares corporation v. Touche established Ultramares doctrine. d. Hochfelder v. Ernst & Ernst ruled that scienter is required before CPAs can be held liable. 8. Which of the following is false with regards to audit responsibility? a. Reasonable assurance is a high, but not absolute, level of assurance. b. The auditor's responsibility for illegal acts is the same as for errors and fraud. C. The auditor of a public company is required to certify the annual financial statements. d. Auditing standards make no distinction between error or fraud; in either case, the auditor must obtain reasonable assurance about whether the financial statements are free of material misstatement. 9. Which of the following is false regarding legal liability? a. Ultra Mares Doctrine states that privity must be present. b. Lack of Duty to perform is a valid defense for CPA's. C. There are four main sources of legal liability. d. The Securities Act of 1933 makes it illegal to offer a bribe to an official of a foreign country. 10. Which of the following is false regarding management assertions? a. Auditor nurse must understand the assertions to do adequate audits. b. Management assertions are implied or expressed representations by management about classes of transactions and the related accounts and disclosures in the financial statements. C. Assertions are classified into three categories. d. Management assertions are not made at the transaction level. 11. Which of the following is true about the assertions? a. Classification and understandability addresses weather assets are the rides of the entity and where the liabilities are the obligations of The Entity. b. The occurrence assertion addresses whether all transactions that should be included in the financial statements are in fact included. C. The existence assertion concerns whether recorded transactions included in the financial statements actually occurred. d. The accuracy of certain addresses whether transactions have been recorded a correct amount. 7. Which of the following is false regarding legal cases discussed in text? a. Bily v. Arthur Young did not uphold the restatement doctrine. b. United States v. Natelli sentenced two CPAs with criminal liability under the 1934 act. C. Ultramares corporation v. Touche established Ultramares doctrine. d. Hochfelder v. Ernst & Ernst ruled that scienter is required before CPAs can be held liable. 8. Which of the following is false with regards to audit responsibility? a. Reasonable assurance is a high, but not absolute, level of assurance. b. The auditor's responsibility for illegal acts is the same as for errors and fraud. C. The auditor of a public company is required to certify the annual financial statements. d. Auditing standards make no distinction between error or fraud; in either case, the auditor must obtain reasonable assurance about whether the financial statements are free of material misstatement. 9. Which of the following is false regarding legal liability? a. Ultra Mares Doctrine states that privity must be present. b. Lack of Duty to perform is a valid defense for CPA's. C. There are four main sources of legal liability. d. The Securities Act of 1933 makes it illegal to offer a bribe to an official of a foreign country. 10. Which of the following is false regarding management assertions? a. Auditor nurse must understand the assertions to do adequate audits. b. Management assertions are implied or expressed representations by management about classes of transactions and the related accounts and disclosures in the financial statements. C. Assertions are classified into three categories. d. Management assertions are not made at the transaction level. 11. Which of the following is true about the assertions? a. Classification and understandability addresses weather assets are the rides of the entity and where the liabilities are the obligations of The Entity. b. The occurrence assertion addresses whether all transactions that should be included in the financial statements are in fact included. C. The existence assertion concerns whether recorded transactions included in the financial statements actually occurred. d. The accuracy of certain addresses whether transactions have been recorded a correct amount
