When Shareholders Use Audited Statements as the Basis for Their

question 34

True/False

When shareholders use audited statements as the basis for their investment decisions,court imposed policy has shaped the law to consider this use outside the intended statutory purpose of the audit.In so doing,the courts have allowed the professional to be released from any duty of care to these individuals for any investment losses incurred as a result of relying on the audit.

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Definitions:

Menopause

The period in a woman's life, typically between the ages of 45 and 55, when menstruation ceases, marking the end of reproductive capability.

Illness

A condition that disrupts a person's physical or mental well-being.

Disease

A condition that impairs normal physiological functioning, causing distress or discomfort to the organism affected.

Widows

Women who have lost their spouses by death and have not remarried.