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

Question 148

Matching

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

Premises:

Responses:

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

Securities Exchange Act of 1934

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

Securities Litigation Uniform Standards Act of 1998

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

standards failure

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

audit risk

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

nonnegligent performance

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

business failure

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.

Foreign Corrupt Practices Act

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

absence of causal connection

contributory negligence

lack of duty to perform

Ultramares doctrine

audit failure

Securities Act of 1933

Premises:

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

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

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

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

Responses:

Securities Exchange Act of 1934

Securities Litigation Uniform Standards Act of 1998

standards failure

audit risk

nonnegligent performance

business failure

Foreign Corrupt Practices Act

absence of causal connection

contributory negligence

lack of duty to perform

Ultramares doctrine

audit failure

Securities Act of 1933

Correct Answer:

Premises:

Responses:

Securities Exchange Act of 1934

Securities Litigation Uniform Standards Act of 1998

standards failure

audit risk

nonnegligent performance

business failure

Foreign Corrupt Practices Act

absence of causal connection

contributory negligence

lack of duty to perform

Ultramares doctrine

audit failure

Securities Act of 1933