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krok68 [10]
2 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]2 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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b. rise, so demand in the market for foreign-currency exchange shifts right.

Explanation:

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3 years ago
Brand __________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the p
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3 years ago
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Check:  5,269.04

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discount within the first 10 days:

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4 0
3 years ago
What are accounts payable and accounts receivable?
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payable = money owed by a company to its creditors

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7 0
3 years ago
Read 2 more answers
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