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All posts in General Questions

Question: All jurists believe in judicial restraint to some degree and all are activists in some situations.

Do you agree or disagree with this quote? Please give examples of both philosophies.

I sell tax services to corporations. I sign a new client to a one-year contract. This new client, is my largest client and can possible refer me to other large clients.

Half way through the contract, the client’s son decides that he wants to give the tax business to a new friend that he made at a bar. Assume that this action is a material breach of the contract.
Should I litigate/sue or seek redress under a form of alternative dispute resolution ?
Explain the pros and cons of each approach.

1.) Shirley Jones, a professional entertainer who lives and works in California, brought suit in a California state court claiming that she had been libeled in an article written by the defendants in Florida and published in the National Enquirer, a national magazine having its largest circulation in California.

Does the California court have jurisdiction over the defendant?
Include a discussion of Due Process in your answer along with a discussion of Personal Jurisdiction + Subject Matter Jurisdiction. Define all THREE concepts….

1. All of the following are parts of corporate governance except:
a. Oversight of management by the board of directors
b. Established processes to provide accountability back to stockholders
c. Whistle-blowing processes
d. Independent review of financial statements by the SEC

2. Which of the following would NOT be a correct statement about a partial cause of corporate governance failures?
a. Boards of directors approved stock option plans that did not align management and shareholder objectives
b. Audit committees met infrequently, only for an hour at a time
c. The AICPA became a trade association concerned with enhancing the wealth of its members
d. Accounting principles became more specific to address the complexities that existed in new transactions

3. Which of the following is NOT a Sarbanes-Oxley requirement for audit committees?
a. The audit committee must be chaired by the chair of the board of directors
b. Audit committee members must be financially literate
c. Audit committee members must be outside directors
d. The audit committee should view itself as the “client” of the external auditor

4. In what way did the public accounting profession bring about the problems that resulted in Congress passing the Sarbanes-Oxley Act of 2002?
a. Failed to detect material financial statement frauds
b. Emphasized generating revenues over audit quality
c. Viewed helping the clients find a solution to show increased earnings as value-added auditing
d. All of the above

5. An audit committee should do all of the following except:
a. Decide whether to retain or dismiss the outside auditors
b. Determine whether material fraud ought to be reported in the company’s financial statements
c. Determine the budget for the internal audit department
e. Appoint, or concur with the appointment of, the chief audit executive for internal audit

6. Which of the following is NOT required to be communicated to the audit committee by the outside auditor?
a. Significant audit adjustments made during the course of the audit.
b. Significant disagreements with management regarding accounting principles
c. The auditor’s knowledge of management’s consultation with other public accounting firms regarding the proposed treatment of a controversial accounting item
d. The extent to which the internal auditors assisted in the conduct of the audit

Concerning negotiating a settlement in the case of a woman who states that her daughter has Leukemia due to environmental violations……..

What I really need is information concerning the cons of negotiation prior to mediation, arbitration or litigation. We have the pros down pat, but I can’t find anything about the cons to this form of settlement. Remember, I need the cons to negotiation, not mediation, not arbitration, but negotiation.