Solved

Bob and Company,Inc

Question 89

Multiple Choice

Bob and Company,Inc.,a public accounting firm,has been performing audit work for Slick Willey's Art House for years.Despite making thorough investigations of the financial information provided by Slick Willey's,Bob and Company,Inc.has failed to uncover the fact that Slick Willey's' was laundering money for organized crime.The United States Justice Department has filed RICO charges against both Slick Willey's and Bob and Company,Inc.Can Bob and Company,Inc.be liable for a violation of RICO?


A) yes, since the accounting firm helped cover up the crime by failing to discover it
B) yes, since the accounting firm could not have truly followed generally accepted accounting principles and generally accepted auditing standards, or they would not have failed to uncover the crime
C) no, unless Bob and Company, Inc. participated in Slick Willey's management
D) no, because accountants are specifically excluded from liability under RICO
E) yes, if Bob and Company, Inc. provided unqualified opinions regarding Slick Willey's audits, but no if the opinion letters were not unqualified

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents