True/False: The Securities Act of 1933 requires annual audited financial statements to be filed with the SEC after the initial sale of securities?

Which of the following would generally result in the smallest potential for financial losses to the auditor?

a)Proportional liability laws

b)Joint and several liability laws

c)Neither; the two laws are likely to yield the same financial loss for an auditor.

You are assigned to an audit engagement for MegaCorp, a large retail entity. As you go through your independence verification process, you discover that your first cousin (your fathers brothers son) recently accepted a new position at MegaCorp. Under AICPA and PCAOB standards on independence, can you continue as an independent member of the audit team?a)Yes

b)No

c)Depends on whether your cousin is in a key position at the client (e.g., accounting function, senior management)