Why Do Accountants Not Enjoy an Accountant-Client Privilege Similar to the Attorney-Client
Why do accountants not enjoy an accountant-client privilege similar to the attorney-client privilege?
What are the major goals the United States Congress intends to accomplish through its passage of the Sarbanes-Oxley Act?
Young and Associates Public Accountants,Inc.is performing an audit for Mackey Corporation.Mike,a member of the accounting firm assigned to conduct the audit,is extremely busy,so he takes the "path of least resistance" in terms of using several shortcuts in the auditing process.Despite the shortcuts,he nevertheless discovers a few discrepancies in Mackey's financial data; however,in his desire to retain Mackey Corporation as a client,Mike ignores the discrepancies and issues an unqualified opinion letter in conjunction with the audit.Had Mike not taken shortcuts,and had Mike fully-investigated the discrepancies,he would have discovered that Alan,a Mackey Corporation vice president,has been embezzling from the company.When the embezzlement is later discovered,the company loses a number of clients,who are unsure of the company's financial stability.What is Young and Associates' liability?
Belle and Company,Inc.,a public accounting firm,has been engaged by Starr Associates to prepare an audit.After the audit is prepared,Starr uses it,along with an unqualified opinion letter,to secure a large commercial loan.During the preparation of the audit,Belle failed to properly represent Starr's true financial condition,and soon after the loan is secured,Starr defaults.Is Belle liable to the bank? If the bank sues Belle,under which theories of liability will Belle be liable,if any?