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Lessons from 1136 Tenants’ Corp

ACCT 460 Chapter 4; Shared Flashcard Set

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ACCT 411 EXAM REVIEW at Old Dominion University - StudyBlue

Chesarek, Dawn Atchison, "Basis for evaluating the consequences of the 1136 Tenants case." (1975). Theses, Dissertations, Professional Papers. Paper 8554.

The 1136 Tenants case is an example where the auditor performs some auditing functions. In this case the audit working papers included one entitled Missing Invoices, which had $40,000 of disbursements without supporting documentation.

FindACase™ | 1136 TENANTS' CORPORATION v

Chapter 4 by Natallia Khadasevich on Prezi

B. The shortages were the result of clever forgeries and collusive fraud which would not be detected by an examination made in accordance with generally accepted auditing standards. C. Lynch & Merritt were not guilty either of gross negligence or fraud. D. Lynch & Merritt were not aware of the King-Wilson surety relationship. 17) An example of auditor legal liability to third parties under common law would be the federal government prosecuting an auditor for knowingly issuing an incorrect audit report A. True B. False 18) The 1136 Tenants case was a criminal case concerning a CPA’s failure to uncover fraud during a financial statement audit. A. True B. False 19) The preferred defense in third-party suits is absence of causal connection. A. True B. False LO 5-5

The 1136 Tenantscase is an example where the auditor performs some auditing functions. In this case the auditor working papers included one entitled Missing Invoices, which had $40,000 of disbursements without supporting documentation.