CHAPTER 23

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1. A professional's fiduciary obligations include

duty to avoid conflicts of interest
duty to disclose all information to the client
duty to maintain confidentiality of the client's information
duty to act in good faith
all of the above

2. Typically, professional associations

set fee scales for their members
investigate complaints about the quality of service provided by their members
are prevented from communicating directly with their members' clients
all of the above
none of the above

3. In business, privilege attaches to professional advice given by

a lawyer
an accountant
an engineer
all of the above
none of the above

4. A professional who fails to take reasonable care in reaching a professional opinion and giving advice may be liable for

breach of contract
the tort of negligence
breach of fiduciary duty
breach of confidentiality
breach of privilege

5. A professional will be held to owe a duty of care to a third party if

the third party has a contract with the professional's client
the third party files a Notice of Intention to Sue in provincial court
the professional has actual knowledge of the limited class of users of the professional opinion and the third party is a member of that class
the professional has insurance to cover the third party's claim
injury to the third party as a result of reliance on the professional's opinion is not reasonably foreseeable

6. The law regarding what professional body or bodies an accountant must belong to in order to be qualified to perform an audit is established by

federal legislation
provincial legislation
case law
equitable principles
none of the above

7. The disciplinary processes established by professional associations like the provincial bar associations of practicing lawyers do not include

a mechanism for receiving complaints from clients
a formal process for hearing evidence to support complaints
a formal process for hearing evidence to dispute complaints
a mechanism for compensating clients injured as a result of unprofessional conduct
a mechanism for disciplining professionals who have been guilty of unprofessional conduct

8. A professional accountant can reduce her risk exposure by

including an exclusion from liability for negligence clause in contracts to perform audits
including an exclusion from liability for negligence clause in contracts for performing professional services other than audits
including an exclusion from liability for criminal offences in contracts to perform audits
including an exclusion from liability for criminal offences in contracts for performing professional services other than audits
none of the above

9. Incorporation of some professional firms can be used to protect the individual professional from

the need to pay professional dues
the need to pay liability insurance premiums
the need to maintain membership in the professional association
personal liability for negligence in practice of the profession
personal liability for matters other than negligence in practice of the profession

10. Errors and omissions insurance is designed primarily to protect professionals against the risk of substantial personal loss due to liability for

criminal offences
torts
failure to pay professional dues
indiscretions like sexual harassment
all of the above