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krok68 [10]
3 years ago
9

While conducting an audit, Larson Associates, CPAs, failed to detect material misstatements included in its client's financial s

tatements. Larson's unqualified opinion was included with the financial statements in a registration statement and prospectus for a public offering of securities made by the client. Larson knew that its opinion and the financial statements would be used for this purpose. In suit by a purchaser against Larson for common-law fraud, Larson's best defense would be that____________.
Business
1 answer:
tatuchka [14]3 years ago
8 0

Answer:

Larson did not have actual or constructive knowledge of the misstatements.

Explanation:

When a CPA conducts an audit of a firm's statements, they do not give a guarantee that all the firm's statements are accurate. Larson CPA is only giving an opinion that the books of its clients follows the generally accepted accounting practices.

They should however not knowing give opinion on statements that they know is untrue.

So the best defense for Larson Associates is that they did not have actual or constructive knowledge of the misstatements. Since they do not guarantee that all statements of the client is accurate.

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Consider a model with an interaction between expenditures: voteA 5 b0 1 b1prtystrA 1 b2expendA 1 b3expendB 1 b4expendA#expendB 1
andrew11 [14]

Answer:

Explanation:

1. What is the partial effect of expendA on voteA?

ΔvoteAΔexpendA=β2+β4expendB→0.0382809+−6.63e−6expendB

2. Is the expected sign for b4 obvious?

Yes because the expendB alone is a negative and expendA is a positive leaving B4 to be a negative number .

4 0
3 years ago
The "decision model that computes the difference between the present value of the investment's net cash inflows, using a desired
DIA [1.3K]

Answer:

C) Net present value

Explanation:

In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.

And, the internal rate of return is that return in which the Net present value come zero.

The average rate of return shows a ratio between the average net profit and the average investment.

In mathematically,

Net present value = Present value of all yearly cash inflows after applying discount factor - initial investment

7 0
3 years ago
A market analyst is developing a regression model to predict monthly household expenditures on groceries as a function of family
Anna007 [38]

Answer and Explanation:

expenditures on groceries

4 0
3 years ago
Harvey, a u.s. taxpayer, purchased 10 shares of mvc stock for $100 per share; one year later he sold the 10 shares for $130 a sh
Nonamiya [84]
<span>Harvey purchased 10 shares of mvc stock for = $100 per share
</span><span>one year later he sold the 10 shares for = $130 a share
</span>The price level increased in a year from = 140 to 147
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5 0
3 years ago
A will is the final declaration of how a person desires to have her or his property disposed of after death and must follow exac
Aleksandr-060686 [28]

Answer:

The above statement is<u> true</u>.

Explanation:

As said in above statement , A will is the final declaration of how  person desires to have her or his property disposed of after death and must follow exactly the requirements of state law to be effective. A will is good , as it express your feelings , that to whom you want to give your property after your death . It is always provided to that person you choose.

It protect your children from become homeless after your death. It also protect your property from being contested. A will is only valid if it is having number of years after the persons death.

A will should not include future plans, gifts and request , life insurance etc.  

8 0
3 years ago
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