Asked by Madilyn McPherson on May 08, 2024
Verified
In which of the following situations would an accountant be subject to criminal liability?
A) Where the accountant negligently performed an audit.
B) Where the accountant willfully omitted a material fact on a securities registration statement.
C) Where the accountant refused to turn over working papers to a client.
D) Where the accountant willfully breached a contract.
Criminal Liability
The legal responsibility for a person or entity for criminal actions or omissions that violate laws, leading to prosecution and punishment.
Willfully Omitted
Intentionally left out or excluded, often referring to information or actions that should have been included or taken.
Securities Registration
The process of registering securities with the appropriate regulatory authority, making the details of the security public and adhering to regulations before they can be sold to investors.
- Identify the conditions facilitating an accountant’s civil or criminal culpability.
- Recognize the scenarios that could lead to accountants facing criminal sanctions and understand the possible defenses.
Verified Answer
Learning Objectives
- Identify the conditions facilitating an accountant’s civil or criminal culpability.
- Recognize the scenarios that could lead to accountants facing criminal sanctions and understand the possible defenses.
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