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Flashcards in Acc. Lia Class Notes Deck (10):
0

GAAS

For auditors

1

GAAP

Standard for accountants

2

Auditing

Looks at financial condition of company

Sees whether it's reported accurately

3

3 audit opinions

1 unqualified opinion

2 qualified opinion

3 adverse opinion

4

Unqualified opinion

Best audit opinion

Info is accurately represented

5

Qualified opinion

Some departure from what represented in the company

6

Adverse opinion

Worst opinion you can get

7

3 theories of liability

1 breach of contract

2 fraud

3 negligence

8

Unqualified opinion shows a company is...

Financially healthy

9

If an accountant fills out a registration statement with the SEC for a company with an unqualified opinion...

They can be held liable under securities laws