Foreseen third parties (or Restatement Standard) . This approach is followed by the majority of states b. Expands the scope of who can potentially sue auditors to include third parties whose reliance on the financial statements can be reasonably foreseen c. Reasons given for allowing third parties without priority to sue: i. Increased liability of other professionals to nonprofits users of their services ii. Lack of fairness of imposing the burden of economic loss on innocent financial statement users iii. Assumption that expanded liability will cause auditors to improve their auditing procedures iv. Auditors have the ability to obtain liability insurance . Increased audit and insurance premium costs can be passed on to the client 4. Reasonably foreseeable third parties (used by MS, NJ, WI) a. More expansive definition regarding the legal standing of who can sue the auditor i. Allows broader class of plaintiff: those that indirectly rely on the accuracy of what another party (stockholders or stockbrokers, for example) might say regarding accuracy of financial reports Reflection While WI, NJ and MS have a very expansive definition of who ought to be able to have legal standing to sue auditors for audit reports of financial statements if the auditor appears to have been negligent or committed fraud, there must be some balance struck to protect both auditors and third parties that may rely on audit reports.
The Restatement Standard, as used by most states, appears to strike that balance, holding auditors accountable for potential negligence or fraud, while still allowing them to obtain liability insurance to limit their exposure to legal claims. Chapter 20, Problem 20-27 a. What elements must be established by Musk to support a cause of action based on negligence? Since state law applicable to this action follows the
Ultramarine decision, which sets the standard for auditor negligent liability by a third party according to priority, in which a contract or specific agreement exists between the two parties, Musk would need to show that a contract existed between Apple and Musk to have legal standing to bring a suit against Apple. B. What elements must be established by Musk to support a cause of action based on a Rule lob-5 violation?
If Musk has established that it can sue under Section 1 0(b), it must prove the following: 1. Apple made a material, factual misrepresentation or omission 2. Musk relied on the financial statements 3. Musk suffered damages as a result of reliance on the financial statements 4. Sciences (Apple acted with intent to deceive, defraud, or with knowledge of a false representation) c.
Is Apple’s assertion regarding lack of priority correct with regard to Musk’s causes of action for negligence or fraud? Regarding negligence, Apple’s assertion regarding Musk’s lack of priority is correct according to the standard set by the Ultramarine decision. There was no contract between Apple and MUSk. However, regarding the fraud charge, the priority requirement does not apply. If the plaintiff can show gross negligence or fraud, the auditor can still be held viable for damages.
As stated in the problem, Apple was aware that Astor was selling inventory at prices substantially less than cost, so it should have known that the inventory valuation provided by Astor should not have been trusted, and should have conducted its own valuation of inventory. While the application of the Ultramarine decision will make it difficult to hold Apple liable for negligence under common law, that decision does not hold weight when considering fraud or gross negligence. In that case, Musk may be able to collect damages on the basis of Rule bib-5.
Brief Description Of A Place
A description off place live in a two-bedroom apartment on the first floor in the 5-story block of flats. My room, which is spacious and full of light, is my favorite one. It is both a study and a bedroom. The only window in my room faces the playgroup, which is situated near our house. It is so nice to look out of the window on a bright sunny day! The view is really wonderful. The walls of my room are papered in a design of yellow and white stripes and the curtains on the window match the wallpaper perfectly. The built-in furniture doesn’t take much space in it.
There is a modern writing table with a reading-lamp on it. I always keep my notes, text-books and pencils on it. There are a great number of my photos above the desk on the wall. Most of my time I spend in a study zone of my room. So it is very important to me to keep it clean. I don’t like when my desk is cluttered with papers and other useless things. The floor in my room is covered with a thick carpet. Besides, grow a lot of flowers in my rooms. You can see them everywhere: on the window-sill, on the bookcase, on the bedside table, on the walls. Take care of the flowers and water them secularly.
To cut the long story short, I should admit that my room is very attractive and I like it very much. I think all the features of my room reflect my personality and interests, and this is what makes it an ideal place for me to wok and relax. He lives in a old flat in the Leftover. It is a three-room flat of a typical block of flats with a lift. His flat is on the fourth floor. As you enter his flat, you find yourself in a small entrance-hall, and from there you can go to the rooms: the living-room, his parent’s bedroom and his own room. Andrea use his room as a study and a bedroom.
His room is a very comfortable one. It has its advantages, though it is the smallest room in his flat. The only window in his room faces the green park, which is situated near our house. It is so nice to look out of the window in a bright sunny day! The view is really wonderful. The walls of his room are papered in a design of gray and silver strips and the curtains on the window match the wallpaper perfectly. The built-in furniture doesn’t take much space in it. There is a modern writing table with a reading- lamp on it. He always keep there his notes, text-books and pencils.
On the title table there is a cassette recorder. You see, he is am fond of music and often enjoy listening to the lovely melody. His bed stands near the standard lamp. There are two water colors and his portrait on the wall above the bed. The floor in Andresen’s room is covered with a thick carpet. Besides, he grows a lot of flowers in my rooms. You can see them everywhere: on the window-sill, on the bookcase, on the little table, on the walls. Take care of the flowers and water them regularly. To cut the long story short, should admit that his room is very attractive and like it very much.
Argumentative AIDS Paper
Support for AIDS Should be Growing Many people believe that if an issue does not apply to them directly, the issue itself is not important. They are wrong. A virus called AIDS (acquired immune deficiency syndrome) is a disease that has puzzled scientists ever since the illness first came to light in the year 1981. Support for AIDS has grown since the early 1 sass’s, but not fast enough to save the lives of those dying from its effects on the immune system, to liberate this disease of its cruel stigma, or to build its research funds in attempts to discover a cure.
AIDS has caused thousands of deaths is the United Stated alone. It is a fact that a person cannot die because of AIDS; one can only die due to the effects of the disease. AIDS attacks the immune system making it deficient, causing a person to be unable to fight off any sicknesses. In time the individual will die from a cold or infection that the immune system should have fought Off. Since the epidemic began, more than 61 9,000 people have died with AIDS in the U. S. (a person infected every nine and a half minutes).
Not to mention the 1. 2 million U. S. Citizens that are living with AIDS currently. One may claim that death is inevitable, why not die from AIDS. The answer to that argument is that NO one should die with AIDS. Yes, everyone ultimately dies, but not from a disease that causes a person to be sick all the time, or to be ripped away from his or her loved ones at a premature age. A family should be united for as long as possible, and not grieving for the loss of a member who passed away after a long painful fight against AIDS.
AIDS has always had an awful reputation. Since the day the first AIDS case was reported, this disease has been called different names other than its scientific one. According to a study taken in 2009 by aids. Gob, sixty-one recent of people infected with ADDIS in the United States are gay. As a result of this statistic, people often call this illness ‘The Gay Disease”. This name is also used due to the theories of people from the sass’s. Back then, it was believed that gay men were the only ones who could contract or spread AIDS.
This false information not only increased the spread of AIDS, but also demoralized gay men. People frequently said that AIDS was “God’s punishment’, humiliating gay men even further. Using this stigma and misleading facts, people were able to embarrass gay men to extreme extents. Even gays who were not infected by AIDS were treated poorly. Very’ few would ever question whether it was right or wrong to degrade anyone to that extent. People simply followed what everyone else tended to do, a trait that luckily seemed to perish as the years went on.
Research and support for AIDS are now growing rapidly in the United States. AIDS organizations are being made to make an impact in the world. Though there are many different AIDS establishments, they all have similar goals; to raise funds and awareness to fight the spread of HIVE/AIDS, to provide assistance for those living with the virus, and to help fund other AIDS organizations throughout the world that give their services to populations in need.
Elizabeth Taylor is a woman who had every single one of these goals in mind when she embarked upon her journey to found her own AIDS organization in 1 991, eventually named TAFFETA (Elizabeth Taylor AIDS Foundation). Since then she has donated over twelve million dollars in funding to various organizations to help stop the spread of AIDS and to provide direct care to those affected by the disease. With organizations like Elizabethan, hope for a cure and support for AIDS is growing stronger everyday.