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corroborative evidence of these expenses existed. In connection with
Stone’s preparation of Pym’s 2012 return, Stone is
• Question 12 The Ultramares decision is a leading case that helps
define when a CPA is liable to different parties. If a CPA has
committed negligence, under this decision the CPA is liable to which
of the following parties?
• Question 13 Clark, a professional tax return preparer, prepared and
signed a client’s 2012 federal income tax return that resulted in a $600
refund. Which one of the following statements is correct with regard
to an Internal Revenue Code penalty Clark may be subject to for
endorsing and cashing the client’s refund check?
• Question 14 Jay, CPA, gave an unqualified opinion on Nast Power
Co.’s financial statements. Larkin bought Nast bonds in a public
offering subject to the Securities Act of 1933. The registration
statement filed with the SEC included Nast’s financial statements.
Larkin sued Jay for misstatements contained in the financial
statements under the provisions of Section 11 of the Securities Act of
1933. To prevail, Larkin must prove
• Question 15 The Joint Ethics Enforcement Program involves joint
enforcement of the ethics rules of
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ACC 544 Quiz 3
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ACC 544 Quiz 3
• Question 1 Which of the following statements about investment
decision models is true?