Question

All of the following are cases related to criminal liability for auditors EXCEPT?

1) Ultramares Corp. v. Touche (1931)
2) HealthSouth (2003)
3) ESM Government Securities v. Alexander Grant Co. (1987)
4) United States v. Simon (1969)

Answer 1

HealthSouth (2003) is the case not directly related to auditor's criminal liability but to the corporate accounting fraud at HealthSouth Corporation. Other listed cases, such as Ultramares Corp. v. Touche, are significant in the context of the legal standards for auditors' conduct.

Step-by-step explanation:

The question asks which of the following cases is not related to criminal liability for auditors. Among the options provided, HealthSouth (2003) is the case that does not primarily deal with auditor's criminal liability, but rather with the massive corporate accounting fraud that took place at HealthSouth Corporation, involving the company's CEO and other senior executives. It is a well-known example of corporate crime. While the case did have implications for the accounting firm involved due to their role in auditing the company, the primary focus of the case was not on the criminal liability of the auditors.

On the other hand, the other cases listed (Ultramares Corp. v. Touche, ESM Government Securities v. Alexander Grant Co., and United States v. Simon) are significant in the context of auditor's liability and the development of legal standards governing the professional conduct of auditors. They involve various aspects of negligence, liability, and the standards for auditing practices.

Answer 2

The question asks which legal case is not related to auditor's criminal liability. Ultramares, ESM, and United States v. Simon involve auditor issues, but HealthSouth involves corporate fraud not directly tied to auditors. The correct answer is option 2.

Step-by-step explanation:

The question pertains to criminal liability for auditors in several well-known legal cases. It asks which case is not related to the criminal liability of auditors:

1. Ultramares Corp. v. Touche (1931)
2. HealthSouth (2003)
3. ESM Government Securities v. Alexander Grant Co. (1987)
4. United States v. Simon (1969)

All of these cases involve auditors and allegations of misconduct or negligence, except for the HealthSouth case in 2003. The HealthSouth case was centered around a massive corporate fraud scandal involving the company's CEO and other senior executives, not specifically the auditors' criminal liability.

Thus, the correct option is (2) HealthSouth (2003).