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Match Eight of the Following Terms (A-N)with the Definitions Provided

Question 117

Matching

Match eight of the following terms (a-n)with the definitions provided below (1-8):

Premises:

Responses:

a federal statute that makes it illegal to offer a bribe to an official of a foreign country

Securities Litigation Uniform Standards Act of 1998

an auditor's legal defense under which the auditor claims that the audit was performed in accordance with generally accepted auditing standards

nonnegligent performance

a federal statute designed to significantly reduce the potential damages in federal securities-related litigation by providing for proportionate liability in most cases

Securities Act of 1933

a federal statute dealing with companies that trade securities on national and over-the-counter exchanges.Auditors are involved because the annual reporting requirements include audited financial statements.

audit failure

a situation in which an incorrect audit opinion is issued because it failed to comply with the requirements of auditing standards

Foreign Corrupt Practices Act

an auditor's legal defense under which the auditor claims that the client's own actions either resulted in the loss that is the basis for damages or interfered with the conduct of the audit in such a way that prevented the auditor from discovering the cause of the loss

absence of causal connection

an auditor's legal defense under which the auditor claims that the failure to follow auditing standards did not cause the damages suffered by the client

lack of duty to perform

a common-law approach to third-party liability in which ordinary negligence is insufficient for liability to third parties,because of the lack of privity of contract between the third-party and the auditor unless the third-party is a primary beneficiary

Ultramares doctrine

business failure

standards failure

audit risk

contributory negligence

Securities Exchange Act of 1934

Premises:

a federal statute that makes it illegal to offer a bribe to an official of a foreign country

an auditor's legal defense under which the auditor claims that the audit was performed in accordance with generally accepted auditing standards

a federal statute designed to significantly reduce the potential damages in federal securities-related litigation by providing for proportionate liability in most cases

a situation in which an incorrect audit opinion is issued because it failed to comply with the requirements of auditing standards

an auditor's legal defense under which the auditor claims that the failure to follow auditing standards did not cause the damages suffered by the client

Responses:

Securities Litigation Uniform Standards Act of 1998

nonnegligent performance

Securities Act of 1933

audit failure

Foreign Corrupt Practices Act

absence of causal connection

lack of duty to perform

Ultramares doctrine

business failure

standards failure

audit risk

contributory negligence

Securities Exchange Act of 1934

Correct Answer:

Premises:

Responses:

Securities Litigation Uniform Standards Act of 1998

nonnegligent performance

Securities Act of 1933

audit failure

Foreign Corrupt Practices Act

absence of causal connection

lack of duty to perform

Ultramares doctrine

business failure

standards failure

audit risk

contributory negligence

Securities Exchange Act of 1934