Which of the Following Is NOT One of the Defenses

question 64

Multiple Choice

Which of the following is NOT one of the defenses an auditor can use against third party lawsuits for fraud?

• A) The third party was not in contractual privity
• B) The auditor did not have a duty to the third party
• C) The third party was negligent
• D) The third party did not suffer a loss

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Definitions:

Filing Process

An organized method of storing documents or electronic records.

Inspecting

The process of carefully examining or scrutinizing something or someone to ensure compliance with standards or to identify defects.

Cross-referencing

The process of linking between different sections of a document or between different documents, to provide readers with more information or resources on a topic.

Storing Files

The process of keeping digital or physical records secured in an organized manner for future retrieval and use.