Under the Hedley Byrne Principle, Auditors' Liability to Third Parties

question 42

Multiple Choice

Under the Hedley Byrne principle, auditors' liability to third parties to whom they owe a duty of care:

• A) does not exist.
• B) is more onerous than their liability to their clients.
• C)C is no different from their liability to their clients.
• D) none of the above.

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Definitions:

Nematocysts

Specialized cells found in cnidarians (e.g., jellyfish) that contain a coiled, venomous thread used for capturing prey and defense.

Tube-shaped

Describing an object or structure that is long, hollow, and cylindrical.

Water Vascular System

A unique hydraulic system used by echinoderms, such as starfish, for locomotion, food and water transportation, and respiration.

Exoskeleton

A rigid external covering for the body in some invertebrate animals, especially arthropods, providing both support and protection.