Question

True and false questions, ?

4) A financial institution sues the audit firm for failure to discover that a borrower's financial statements a are materially misstated. This is an example of liability to third parties.

       5) Knowledge and intent to deceive is most accurately describes fraud.

       6) Ethics are a set of moral principles or values.

       7) One of the main reasons people act unethically is that they choose to act selfishly.

8) A rationalization method that can easily result in unethical behavior is the argument that "everybody                       does it”.   

       9) An advantage of the principles of professional conduct in the Code of Professional Conduct is that                    they are more easily enforced than are the specific rules of conduct.

Answer 1

4) Solution: True

Explanation: In audit of financial statements the legal liability which are materially misstated under the common is an example of liability to third parties

　

5) Knowledge and intent to deceive is most accurately describes fraud

Solution: True

Explanation: The intent and knowledge to deceive are main contents for fraud

　

6) Solution: True

Explanation: Ethics refers to a system of moral rules or principles of behaviour which includes doing the right thing in the right approach

　

7) Solution: True

Explanation: When people choose to act selfishly they often act unethically

　

8) Solution: True

Explanation: The final side of the unethical behavior can be rationalization- we're doing what others are doing

　

9) Solution: False

Explanation: In the Code of Professional Conduct the principles of professional conduct cannot be easily enforced