To Succeed in an Action Against the Auditor, the Client

question 70

Multiple Choice

To succeed in an action against the auditor, the client must be able to show that:

• A) there is a close causal connection between the auditor's breach of the standard of due care and the damages suffered by the client.
• B) there was a written contract.
• C) the auditor was fraudulent.
• D) the auditor was grossly negligent.

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Definitions:

Type B Personality

A personality type characterized by a less competitive, more relaxed, and less stressed-out demeanor compared to Type A Personality.

Internal Locus of Control

The belief that one is in control of their life and outcomes, as opposed to external forces having that control.

External Locus of Control

An external locus of control refers to the belief that one's successes or failures result from external factors beyond one's control, rather than one's own efforts.

Internal Locus of Control

A belief that one has control over their own life and outcomes, as opposed to external forces having that control.