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True and false questions, ? 4) A financial institution sues the audit firm for failure to discover that a borrower's financial statements a are materially

True and false questions, ?

4) A financial institution sues the audit firm for failure to discover that a borrower's financial statements a are materially misstated. This is an example of liability to third parties.

5) Knowledge and intent to deceive is most accurately describes fraud.

6) Ethics are a set of moral principles or values.

7) One of the main reasons people act unethically is that they choose to act selfishly.

8) A rationalization method that can easily result in unethical behavior is the argument that "everybody does it.

9) An advantage of the principles of professional conduct in the Code of Professional Conduct is that they are more easily enforced than are the specific rules of conduct.

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