Question 2 O out of 1 points Alex is the Chief Executive Officer (CEO) of a large corporation. Alex has excellent management skills, but has little financial expertise. When the firm is caught inflating its profits on its financial statements, Alex claims he was unaware of any financial issues. Alex will most likely Selected Answer: Answers Win a lawsuit in this regard as his limited financial background means it would be difficult to understand the financial statements as he stated Win a lawsuit in this regard as he is not responsible for financial statements in his role as CEO Win a lawsuit in this regard as it is the company that is liable, not Alex Lose a lawsuit in this regard as Sarbanes Oxley removes the defense of "I wasn't aware of financial issues" from CEOs and CFOs Win a lawsuit in this regard as his limited financial background means it would be difficult to understand the financial statements as he stated estion 4 O out of 1 points Lily is auditing the financial statements of an important client. In reviewing the statements, the profits seem high given the loss of a lot of important business for her client that year. However, Lily ignore this red flag Selected Answer: Answers: None of the above Lily may be liable under the Securities Acts of 1933 and 1934, and under state law None of the above Lily may be liable under the Securities Act of 1933 only Lily may be liable under state law only Question 8 O out of 1 points PWC is a professional services firm that provides both accounting and consulting services. For convenience, PWC provides both auditing services to a client and consulting services on their financial information systems. Selected Answer: PWC is providing superior service to its client by providing both auditing and consulting services Answers: PWC is not in violation of the Sarbanes Oxley Act PWC is violating the requirements under Sarbanes Oxley that prohibits accounting firms that audit public companies from providing consulting services to their audit clients None of the above PWC is providing superior service to its client by providing both auditing and consulting services O out of 1 poi Question 9 An engagement letter is a written contract where an accountant promises a client Selected Answer: Answers: None of the above Timely completion Accuracy All of the above None of the above 1 out of Question 10 I . 19 o