1.
Please help with these few question for auditing II
1.Identify and describe accountants' exposure to lawsuits and loss judgments.
2. Describe the SEC activities and literature involved in the regulation of accounting.
3. Specify the characteristics of accountants' liability under common law, and cite a specific case
precedent.
Solution
1. every preperation of accounts should be follow some conventions and concepts, they should
disclose the material information and consider only the important information.
2. SEC focus on the performance of security markets in US and framed many regulations and
guidelines for the operations of financial markets in US. the objective is protect the investors and
their rights in markets.
3. to a firm liability means obligation, financial obligation which the firm has to repay on a
future date.