Answer:
1. Under the Securities Act of 1933, initial purchasers of securities may sue the auditors for misleading audited financial statements and need not prove that they relied on the financial statements. The burden of proof is on the auditors to prove that they were <u>relied</u> in the performance of their work.
2. When CPAs are associated with <u>unaudited financial statements
</u>
, a possibility exists that the client may misinterpret the extent of the CPAs' services and believe that the accountants are acting as auditors.
3. A document including audited financial statements that must be filed with the SEC by any company intending to sell its securities to the public through the mails or interstate commerce is called a <u>Form S-1.</u>
4. When damage to another is directly attributable to a wrongdoer's act, <u>proximate cause</u> is said to exist.
5. An <u>engagement letter</u> is the written contract summarizing the relationship between the auditors and the client.
Answer:
Falsifiability
Explanation:
Based on the information provided within the question it can be said that the principle that is involved here is Falsifiability. This term refers to the assertion that for a hypothesis to have credibility, it has to be inherently disprovable before being accepted as a scientific hypothesis or theory. Otherwise it will not be.
Answer:
- Tax Examiner
-
Equal Opportunity Representative
Explanation:
Usually tax examiners perform tasks like: reviewing tax returns, contacting taxpayers, verify data through audits, evaluation financial information, notifying taxpayers about overpayments or underpayments.
Equal opportunity representative main role is to monitor and evaluate compliance with equal opportunity laws, which means that they must investigate employment practices or alleged violations of the Equal Opportunity Act and other laws and regulations that prohibit work discrimination.
