Shane Agrees to Perform an Audit for ShowCo Within 30

question 54

True/False

Shane agrees to perform an audit for ShowCo within 30 days,knowing that time is of the essence.When the 30 days are up,Shane has only performed 60% of the audit.Shane has materially breached his contract with ShowCo.

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Definitions:

Auditor Liability

pertains to the legal responsibility auditors bear for failing to detect or report inaccuracies in financial statements they audit, leading to damages for users of these statements.

Normal Audit

A regular examination and evaluation of an entity's financial statements and records to ensure accuracy and compliance with accounting standards and regulations.

Professional Responsibilities

Duties and obligations associated with a profession, often guided by codes of conduct to ensure ethical and competent practice.

Breach of Contract

Occurs when one party fails to fulfill their obligations as outlined in a contract, justifying legal action by the non-breaching party.