1 . The Foreign Corrupt Practices Act ( FCPA ) of 1977 : 2 . In the auditing environment , failure to meet auditing standards is often : 3 . In the performance of an audit , a CPA : 4 . The principal issue to be resolved in cases involving alleged negligence is usually : 5 . Under the laws of agency , partners of a CPA firm may be liable for the work of others on whom they rely . This would not include : 6 . " Absence of reasonable care that can be expected of a person in a set of circumstances " defines : 7 . A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract . This is known as the concept of : 8 . Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion , even