Questions from General Accounting

Q: Distinguish between common-law liability and statutory liability for auditors.

Distinguish between common-law liability and statutory liability for auditors. What is the basis for the difference in liability?

Q: Consider the practice of making “facilitating payments” to foreign officials

Consider the practice of making “facilitating payments” to foreign officials and others as part of doing business abroad in the context of the following statement: International companies are confront...

Q: One provision of the U.K. Bribery Act is that

One provision of the U.K. Bribery Act is that it applies to bribes that occur anywhere in the world by non-U.K. companies that conduct any part of their business in the United Kingdom. For example, th...

Q: What is the purpose of having a two-tier system of

What is the purpose of having a two-tier system of boards of directors in countries such as Germany? How does the dual-board approach ameliorate the potential conflicts in the principal-agent relation...

Q: In discussing the benefits of the Global Code of Ethics, Richard

In discussing the benefits of the Global Code of Ethics, Richard George, chairperson of the International Ethics Standards Board for Accountants, said, “Strong and clear independence standards are vit...

Q: According to Adam Smith’s The Wealth of Nations, when it comes

According to Adam Smith’s The Wealth of Nations, when it comes to government oversight in the free market and regulations, the less intervention, the better. Does the government play an important role...

Q: What are the unique challenges to the global internal audit function?

What are the unique challenges to the global internal audit function?

Q: In this chapter, we discuss problems encountered by the PCAOB in

In this chapter, we discuss problems encountered by the PCAOB in gaining access to inspect workpapers of auditors in U.S. international accounting firms that have Chinese company clients that list the...

Q: Distinguish between the legal concepts of actually foreseen third-party users

Distinguish between the legal concepts of actually foreseen third-party users and reasonably foreseeable third-party users. How does each concept establish a basis for an auditor’s legal liability to...

Q: Do you think that the provision of nonaudit services for a client

Do you think that the provision of nonaudit services for a client with a failed audit is evidence of negligence?