A CPA is subject to a criminal ability if the CPA
A)Refuses to turn over the working papers to the client
B)Performs an audit in a negligent manner
C)Willfully omits a material fact required to be stated in a registration statement
D)Willfully breaches the contract with the client

Question

Quizplus · Accepted Answer

A CPA is subject to criminal liability if they willfully omit a material fact required to be stated in a registration statement, which is a violation of federal securities laws. Refusing to turn over working papers or breaching a contract would typically result in civil penalties, while negligent audit performance may result in professional discipline or civil liability.

A CPA Is Subject to a Criminal Ability If the CPA