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Examine the legal liability an accounting professional has,

Please respond to the following:

Examine the legal liability an accounting professional has, including how a CPA is protected.

Differentiate between fraud and negligence.

Examine the four major sources of auditors' legal liability, including why they are liable for each source.

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Examine the legal liability an accounting professional has, including how a CPA is protected.

-- Accounting professionals, including both CPAs and accountants who are not CPAs, are held to high legal and ethical standards in the accounting profession. From a legal standpoint, accountants must comply with GAAP and GASB standards. In addition, if the accountant is working for a publicly traded company, the accountant must also comply with the SEC and all Sarbanes-Oxley Act requirements. Accountants must also legally comply with the standards set forth by their applicable regulating bodies, including the state board of accountancy, the AICPA, the FASB, and the IMA, for management accountants. The CPA is protected if (and only if) he or she follows the proper protocol in executing his or her duties as a CPA. The CPA must be in ...

Solution Summary

Examine the legal liability an accounting professional has, including how a CPA is protected.

Differentiate between fraud and negligence.

Examine the four major sources of auditors' legal liability, including why they are liable for each source.

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