An Auditor Can Be Held Liable to a Third Party

question 27

Multiple Choice

An auditor can be held liable to a third party for:

• A) Breach of the Accountant Client privilege.
• B) Negligence
• C) Fraud
• D) b & c are correct

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Definitions:

Coal Mine Pollution

The release of harmful substances into the environment as a result of coal mining activities, affecting air, water, and soil quality.

Automobile Emissions

The pollutants released into the atmosphere by motor vehicles, including carbon monoxide, nitrogen oxides, and hydrocarbons.

Specific Tax

A fixed amount imposed by the government on a product, per unit of quantity.

External Benefit

A benefit that affects a party who did not choose to incur that benefit, typically referring to positive side effects of a transaction or activity on third parties.