Accountants' Practice: Indicate whether the following statements are true or false.

- 1. 2.	Requirements for certified public accountant (CPA) licenses and permits are regulated by the Securities and Exchange Commission (SEC).
- 1. 2.	The Public Company Accounting Oversight Board (PCAOB) registers accounting firms that audit issuers of publicly traded securities.
- 1. 2.	The Internal Revenue Service (IRS) may fine a CPA for violations of tax rules and regulations.
- 1. 2.	The IRS may bar a CPA from practicing before the IRS based on noncompliance with tax rules and regulations.
- 1. 2.	A CPA must join either a state CPA society or the American Institute of Certified Public Accountants (AICPA) to practice public accounting.
- 1. 2.	An accountant is protected from being compelled to testify in federal tax court with regard to privileged matters under state statutes asserting that communications between the client and the accountant are privileged.
- 1. 2.	A CPA's license may be suspended for failure to comply with continuing education requirements.
- 1. 2.	A CPA may disclose taxpayer income tax return information during a quality review conducted by CPAs without client permission.
- 1. 2.	A CPA has met the required standard of care in conducting an audit of a client's financial statements if the CPA conducted the audit with the same skill and care expected of an ordinarily prudent CPA under the circumstances.
- 1. 2.	A CPA has met the required standard of care in conducting an audit of a client's financial statements when the audit was conducted to discover all acts of fraud.
- 1. 2.	While performing the audit, a CPA failed to discover irregularities that later caused stockholders to suffer substantial losses. For the CPA to be liable under common law negligence, the stockholders must prove, at a minimum, that the CPA knew of the irregularities.
- 1. 2.	While performing the audit, a CPA failed to discover irregularities that later caused stockholders to suffer substantial losses. For the CPA to be liable under common law negligence, the stockholders must prove, at a minimum, that the CPA failed to exercise due care.