Question

An accountant is starting a new job and wants to make sure he does not put himself or his company at legal risk. He talks to his companyâs law department about which areas of law he should brush up on. The company lawyer tells him relevant areas of the law he should be aware of include:
a. White collar crime, liability of accountants, contracts
b. Product liability, comparative law, agency law
c. Antitrust law, liability of accountants, insurance law
d. Liability of accountants, international law, employment discrimination
e. Antitrust law, international law, consumer law

Answer 1

Answer: White collar crime, liability of accountants, contracts

Explanation:

Based on the information given, the company lawyer will tell him relevant areas of the law he should be aware of such as white collar crime, liability of accountants, and contracts.

White-collar crime simply refers to crime that a person may commit against a business and they are financially motivated e.g embezzlement, fraud, money laundering etc.

Also, when a misstatement occurs when preparing an account, the accountant is liable and in such case,will be held responsible for any inaccuracies that was noticed.

Based on the above explanation, the accountant should be aware of white collar crime, liability of accountants, contracts.