The 2012 News of a Massive Alleged Bribery Scheme Involving
The 2012 news of a massive alleged bribery scheme involving Wal-Mart has brought charges against the company under the:
A) Securities Act of 1933.
B) Securities Act of 1934.
C) Foreign Corrupt Practices Act of 1977.
D) Sarbanes-Oxley Act of 2002
Which of the following statements about the Securities Act of 1933 is not true?
A) A third party that purchased securities described in the registration statement may sue the auditor for material misrepresentations or omissions in the audited financial statements.
B) A third party user does not have the burden of proof that he/she relied on the financial statements.
C) A third party user has the burden of proof that the auditor was either negligent or fraudulent in doing the audit.
D) A third party user does not have the burden of proof that the loss was caused by the misleading statements.
The most significant audit issue that came as a result of the court decision in the Escott et al.v.Bar Chris Construction Corporation case in 1968 was:
A) the court's reaffirmation that the burden of proof was on the plaintiff to prove the auditor was negligent.
B) the affirmation of the increased auditor's responsibility when performing an S-1 review, a review of events subsequent to the balance sheet, for registration statements.
C) the increased auditor responsibility when associated with unaudited financial statements.
D) the court's refusal to allow the percentage-of-completion method of accounting for revenues.
Under the federal securities acts,one significant result occurring directly due to the Escott et al.v.Bar Chris Construction Corporation case was that SAS was changed to require:
A) greater emphasis on subsequent events procedures.
B) new standards for unaudited statements.
C) a broader definition of third party beneficiaries.
D) more companies to file annual reports with the SEC.