Business Law with UCC Applications,13e Professional Liability Chapter 32 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

32-2 Learning Objectives 1.Distinguish between a certified public accountant and a public accountant. 2.Differentiate between generally accepted accounting principles and generally accepted auditing standards. 3.Identify the types of auditing opinions that can be issued by auditors. 4.Indicate the duties that accountants owe to their clients. 5.Outline the registration requirements imposed on architects by the state.

32-3 Learning Objectives (cont.) 6.Identify the duties that an architect owes to his or her clients. 7.Determine the duties that an attorney owes to his or her clients. 8.State the standard of care used to judge health care professionals. 9.Contrast the locality rule with the national standard in determining a health care provider’s liability. 10.Explain the circumstances in which hospitals can be held liable for the torts of independent contractor physicians.

32-4 Professional Liability The Liability of Accountants –The Regulation of Accounting and Auditing –Accountant Registration Accounting and Auditing –The Dodd-Frank Act –Sarbanes-Oxley Act

32-5 Professional Liability Accounting and Auditing –Auditing –Accounting Principles –Auditing Standards –Types of Opinion –Ethical Rules of Accountants

32-6 Professional Liability The Dodd-Frank Act –Securities Exchange Commission Jurisdiction –Government Accountability Office/Public Company Accounting Oversight Board –Consumer Financial Protection Bureau

32-7 Professional Liability The Liability of Accountants –Conflicting Jurisdictional Problems –Duties Owed by the Accountant to the Client –The Accountant’s Liability to Third Parties –An Accountant’s Statutory Liability

32-8 Professional Liability Duties Owed by the Accountant to the Client –Negligence/Malpractice –Fraud

32-9 Professional Liability The Accountant’s Liability to Third Parties –Negligence/Malpractice –Actually Named Third Parties –Specifically Foreseen Third Parties –Reasonably Foreseeable Third Parties –Fraud

32-10 Professional Liability An Accountant’s Statutory Liability –Securities Act of 1933 –Securities and Exchange Act of 1934 –State Statutes

32-11 Professional Liability The Liability of Architects and Attorneys –The Liability of Architects –The Liability of Attorneys –Steps in a Legal Malpractice Case

32-12 Professional Liability The Liability of Architects –State Regulation –Duties of the Architect –Contractual Liability –Tort Liability

32-13 Professional Liability The Liability of Attorneys –State Regulation of Attorneys –Ethical Rules of Attorneys –Ethical Problems in Dodd-Frank –Negligence/Malpractice –Duties of the Attorney

32-14 Professional Liability Steps in a Legal Malpractice Case –Third-Party Liability –Court-Driven Protection –Criminal Liability

32-15 Professional Liability The Liability of Health Care Providers –The Professional Status of Health Care Providers –The Health Care Standard of Care –Medical Records and the Patient’s Rights –The Patient Protection and Affordable Care Act

32-16 Professional Liability The Health Care Standard of Care –Consent –Negligence –Causation in a Malpractice Suit –Expert Testimony

32-17 Professional Liability Hospital Liability –Ostensible Authority and Hospital Liability –Negligent Credentialing by Hospital Authorities –Tort Reform and Litigation