Under state law, which of the following statements most accurately reflects the liability of a CPA who fraudulently prepares a client's tax return?

Under state law, which of the following statements most accurately reflects the liability of a CPA who fraudulently prepares a client's tax return?

The CPA probably is liable to any person who suffered a loss as a result of the fraud.

Which of the following facts must be proven for a lender to prevail in a state-law negligent misrepresentation action against a CPA who prepared a borrower's tax return that was disclosed to the lender?

Which of the following facts must be proven for a lender to prevail in a state-law negligent misrepresentation action against a CPA who prepared a borrower's tax return that was disclosed to the lender?

The plaintiff justifiably relied on the misrepresentations.

Under the common law, which of the following statements is generally true regarding the liability of a CPA who negligently prepares a client's tax return?

Under the common law, which of the following statements is generally true regarding the liability of a CPA who negligently prepares a client's tax return?

The CPA is liable to anyone in a class of third parties who the CPA knows will rely on the opinion.

Sun Corp. approved a merger plan with Cord Corp. Factors in approving the merger were the tax returns of Cord prepared by Frank & Co., CPAs. Sun had required Cord to disclose its tax returns and audited financial statements as a condition of the merger. Frank knew of this condition before it prepared returns that contained irregularities that later caused Sun to suffer substantial losses. For Frank to be liable for common law negligence, Sun, at a minimum, must prove that Frank

Sun Corp. approved a merger plan with Cord Corp. Factors in approving the merger were the tax returns of Cord prepared by Frank & Co., CPAs. Sun had required Cord to disclose its tax returns and audited financial statements as a condition of the merger. Frank knew of this condition before it prepared returns that contained irregularities that later caused Sun to suffer substantial losses. For Frank to be liable for common law negligence, Sun, at a minimum, must prove that Frank

Failed to exercise due care.

Which of the following penalties is usually imposed against an accountant who, in the course of preparing a tax return, breaches common law contract duties owed to a client?

Which of the following penalties is usually imposed against an accountant who, in the course of preparing a tax return, breaches common law contract duties owed to a client?

Money damages.

A client suing a CPA for negligent preparation of a tax return in a state court must prove each of the following factors except

A client suing a CPA for negligent preparation of a tax return in a state court must prove each of the following factors except

Reliance.

Plaintiff acquired a security issued under a registration statement that contained a material misstatement of facts. In a suit by Plaintiff under Section 11 of the Securities Act of 1933 against the issuer's auditor,

Plaintiff acquired a security issued under a registration statement that contained a material misstatement of facts. In a suit by Plaintiff under Section 11 of the Securities Act of 1933 against the issuer's auditor,

Plaintiff need not prove intent or causation by the defendant.