A Privity Letter Should NOT Be Provided

question 50

Multiple Choice

A privity letter should NOT be provided:

• A) if the audit is being conducted under the Corporations Act.
• B) if the third party seeking it fails to acknowledge in writing the potential inadequacy of the audit report for its purpose.
• C) under any circumstances.
• D) if reliance is foreseeable.

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Definitions:

Obesity

A medical condition characterized by the excessive accumulation and storage of fat in the body, leading to health complications.

R&D

Research and Development, which involves investigative activities that a business or person undertakes to innovate and introduce new products or services or to improve their existing offerings.

Government Proposals

Formal plans or suggestions presented to public authorities aiming to address community needs, implement policies, or secure contracts.

High Risk

Refers to the increased likelihood of a negative outcome, often associated with investments, operations, or decisions.