Bank of Gould Student Coaching

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Bank of GouldStudent Coaching
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Negligence

• Duty of Care Owed by Defendant to Plaintiff
• Breach of the Duty of Care by the Defendant
• Causation
• Damages

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Duty of Care

• Foreseeability Test Accountants owe a duty of
  care to all foreseeable plaintiffs.
• Restatement View Accountants owe a duty of care
  to members of a restricted group of third parties
  whom the accountants intend to influence or those
  whom the accountants know their clients intend to
  influence.
• Privity of Contract View Accountants owe a duty
  of care to all parties with whom they have a
  privity of contract.

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Breach of Duty of Care

• Professional Standard In performing services, an
  auditor has the duty to have that degree of
  learning and skill ordinarily possessed by a
  reputable certified public accountant practicing
  in the same or a similar locality under similar
  circumstances.
• GAAP is Relevant In determining whether the
  accountant fulfilled its professional duties, one
  may consider, among other evidence, whether the
  accountants work complied with Generally
  Accepted Accounting Principles.

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Causation

• Causal Connection there must be a causal
  connection between the negligent conduct and the
  resulting injury.
• But For Test But for the defendants negligence,
  the plaintiff would not have sustained the loss.

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Asset Valuation

• Notes exchanged for property, goods, or services
  are carried on the balance sheet
• At the market value of the item exchanged if this
  is readily determinable.
• At the present value of the future cash receipts
  on the note discounted at the borrowers rate of
  interest. Use an interest rate of 15 in this
  case.

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Accountants Duty of Care to the Public

• Members of the AICPA accept the responsibility to
  serve the public interest with integrity,
  objectivity, and due professional care.
• Members may encounter pressures from the groups
  it serves (including clients, credit grantors,
  etc.)
• When members fulfill their responsibility to the
  public, client and employers interests are best
  served.

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Ethics Definition

• The study of what is right and wrong.
• Refers to actions that would be harmful to others
  or result in social consequences.

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The Difference Between Ethics and Laws

• Similarities
• Laws and Ethics both refer to proper and improper
  behavior
• Differences
• Laws are formal written rules
• Ethics are informal many subtleties

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How to Analyze Ethical Problems in Business

• Guidelines to use to help us make ethical
  decisions
• Utility Cost-Benefit Analysis
• Rights Determining and Protecting Entitlements
• Justice Is it fair?

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Strategic Thinking

• Test 1 Ability To See the Whole Picture
• Test 2 A Sense of Direction or Destiny
• Test 3 Openness to New Experience
• Test 4 Gap Between Current Reality and Future
• Test 5 Use of Creative and Critical Thinking