If a shareholder sues a CPA in state court for nonstatutory fraud based on false information contained in a tax return prepared by the CPA, which of the following, if present, would be the CPA's best defense?
A. The shareholder lacks privity to sue.
B. The false information is immaterial.
C. The CPA did not financially benefit from the alleged fraud.
D. The contributory negligence of the client releases the CPA from liability.
Answer: B. The false information is immaterial.
You might also like to view...
The scandal about finding horse DNA in frozen beef burgers sold in supermarkets in Ireland became a big issue. However, the fact remains that 60,000 tons of horse meat were sold in Europe in 2012
Other facts about horse meat include all of the following except: A) in Europe, horse meat is available from a variety of suppliers. B) it is legal to produce horse meat in the United States. C) horses are shipped from the United States to Mexico and Canada for slaughter. D) Italy imports 50 million pounds of horse meat annually from Ireland. E) horse meat is lean and high in iron and other nutrients.
Interactive television (ITV) allows viewers to see an ad in its entirety by pressing a remote button; to order products from home-shopping channels; or choose different camera angles, such as for sporting events
Comments by James Pennefather, brand manager for Smirnoff, UK, based on comparison of traditional TV ads to ITV features included all of the following except: A) "it allows viewers to interact with programming." B) "it is a lot more unproven." C) "it needs further testing." D) "it is a calculated risk." E) "it may or may not succeed."