The Unique Aspect of Auditors' Legal Liability in the Rosenblum

question 58

Multiple Choice

The unique aspect of auditors' legal liability in the Rosenblum v. Adler ruling is:

• A) Auditors could be held liable for ordinary negligence to all reasonably foreseeable third parties
• B) Auditors could be held liable for gross negligence to all reasonably foreseeable third parties
• C) Auditors could be held liable for fraud to all reasonably foreseeable third parties
• D) Auditors should be able to detect all deceit by management

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Definitions:

Genetic Trait

A characteristic that is inherited from one's parents and can be passed on to offspring.

PAIBOC Analysis

A method for analyzing communication by considering Purpose, Audience, Information, Benefits, Objections, and Context.

Challenges

Difficulties in a job or undertaking that are stimulating to one engaged in it.

Successfully Communicate

the ability to convey or share information effectively, ensuring understanding and engagement from the recipient.