All categories

2 years ago

When courts find accountants liable for constructive fraud, the implication is that:______.

Business

1 answer:

barxatty [35]2 years ago

7 0

Even if they were unaware of the fraud, accountants may be held accountable for it.

<h3>How does constructive fraud work?</h3>

A legal fable known as "constructive fraud" describes a circumstance in which a person or organization obtained an unfair advantage over another using dishonest or unjust means. As opposed to true fraud, no proof of intent is required. The failure to inform clients of product flaws is one example of unfair practices.

The elements are:

1) a duty owed by the party to be charged to the complaining party due to their relationship;

2) violation of that duty by making deceptive material misrepresentations of past or current facts or remaining silent when a duty to speak exists; and

3) reliance on such statements by the complaining party.

To know more about fraud visit:

https://brainly.in/question/51948586

#SPJ4

You might be interested in

What is the key to building lasting customer relationships?

m_a_m_a [10]

(A) creating superior customer value and satisfaction.

When customers are satisfied with products and services, it tends to build a lasting relationship, and that is why some customers will stick to a particular product for years irrespective of change in price or change in income. Value to customers as to do with what they benefit from your product or services rendered, and so to create superior customer value satisfaction, you need to understand what your customers really want and ensure that they get value/benefit.

6 0

3 years ago

if you do not pay the entire credit card bill you are charged a FLAT FEE or an INTEREST on the unpaid part?

Soloha48 [4]

You are charged with flat fee

7 0

3 years ago

Bond P is a premium bond with a coupon rate of 9 percent. Bond D has a coupon rate of 5 percent and is currently selling at a di

Firdavs [7]

Answer:

a) 7% as their market price will adjsut to give the same yield as the market

b) bond P = -10.17

bonds D = 10.07

Explanation:

we have to calcualte the price variation of the bonds from now (10 years to maturity) to next year (9 years)

Bond P

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 90.000

time 10

rate 0.07

$90 \times \frac{1-(1+0.07)^{-10} }{0.07} = PV\\$

PV $632.1223

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 10.00

rate 0.07

$\frac{1000}{(1 + 0.07)^{10} } = PV$

PV 508.35

PV c $632.1223

PV m $508.3493

Total $1,140.4716

then, at time = 9

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 90.000

time 9

rate 0.07

$90 \times \frac{1-(1+0.07)^{-9} }{0.07} = PV\\$

PV $586.3709

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 9.00

rate 0.07

$\frac{1000}{(1 + 0.07)^{9} } = PV$

PV 543.93

PV c $586.3709

PV m $543.9337

Total $1,130.3046

Capital loss: 1,130.30 - 1,140.47 = -10.17

We repeat the process for bond D

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 50.000

time 10

rate 0.07

$50 \times \frac{1-(1+0.07)^{-10} }{0.07} = PV\\$

PV $351.1791

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 10.00

rate 0.07

$\frac{1000}{(1 + 0.07)^{10} } = PV$

PV 508.35

PV c $351.1791

PV m $508.3493

Total $859.5284

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 50.000

time 9

rate 0.07

$50 \times \frac{1-(1+0.07)^{-9} }{0.07} = PV\\$

PV $325.7616

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 9.00

rate 0.07

$\frac{1000}{(1 + 0.07)^{9} } = PV$

PV 543.93

PV c $325.7616

PV m $543.9337

Total $869.6954

Capital gain: 869.70 - 859.53 = 10.07

6 0

3 years ago

On January 1, 2021, Blake Corporation issued 1,000 of its 9%, $1,000 callable bonds for $1,060,000. The bonds are dated January

Paul [167]

Answer:

$1,076,000

Explanation:

The computation of the carrying value of the bonds is shown below:

= Face value of the bond + unamortized bond premium

= $1,060,000 + $16,000

= $1,076,000

We simply added the face value of the bond and the unamortized bond premium so that the carrying value of the bond could come

All other information which is given is not relevant. hence, ignored it

8 0

2 years ago

Tax return preparers may generally rely on a client's representations without verification unless:

Valentin [98]

Answer:

Tax return preparers may generally rely on a client's representations without verification unless the information seems incorrect, inconsistent, or incomplete, Option A.

Explanation:

A "tax return preparer" usually relies in good faith without verification upon information furnished by a taxpayer or another advisor or third party. But he has the authority to make inquires in case he feels the information given is incomplete or inconsistent. Also, some of the provisions also require few circumstances or facts to be claimed before deduction is made. So, A tax return preparer should make relevant inquiries to decide if the information given is correct as required by an "Internal Revenue Code" section or a regulation to claim either a deduction or a credit.

4 0

2 years ago