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What are the potential civil and criminal liabilities of an accountant?
What is the significance of the Foreign Corrupt Practices Act? Explain.

What are the formal and informal sources of regulations for accountants? What are some of the consequences of violating accounting regulations? How has the Sarbanes-Oxley Act affected accounting regulation? Give examples.
What are the elements of a crime? What are some examples of crimes that do not require scienter? What constitutes criminal RICO? What are the consequences of engaging in these activities? Give examples.

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What are the potential civil and criminal liabilities of an accountant?

"As per Securities Exchange Act of 1934, Section 18 imposes civil liability on an accountant for any false or misleading information filed with the SEC. A showing of good faith and lack of actual knowledge of falsity will serve as a defense. Civil liability may also be imposed pursuant to Rule 10b-5 if there is scienter,and this may be demonstrated by a reckless disregard of the truth. Mere negligence would not be sufficient to establish scienter.

An accountant's potential criminal liability is primarily based on federal securities and federal tax law. Additionally, fraudulently certifying financial statements constitutes a crime in most states. Criminal penalties may be imposed for willful violations. Criminal liability - imposed for willful violation of ß 18 or Rule 10b-5. As amended by the Sarbanes-Oxley Act, conviction may carry a fine of not more than$5 million or imprisonment for not more than twenty years, or both. An accounting firm may be fined up to $25 million."

Reference: http://homepages.uwp.edu/zameerud/webpage/busn_372/Lecture_Outlines/Chapter%2045.pdf

What is the significance of the Foreign Corrupt Practices Act? Explain.

The main significance of this act is that it prohibit the bribery of foreign government officials by US people and prescribe record keeping and accounting practices. The act makes it illegal for US citizens to give bribe ...

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What are the potential civil and criminal liabilities of an accountant?

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