When Courts Adopt the "Foreseeable Parties" Ruling, Auditor Liability for Ordinary

question 21

Multiple Choice

When courts adopt the "foreseeable parties" ruling, auditor liability for ordinary negligence is extended to:

• A) all current and future creditors.
• B) a distinct but unlimited class of users.
• C) virtually all legitimate users of the financial statements.
• D) all current and future investors.
• E) a distinct but limited class of users.

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Definitions:

Expectation of Drinking

The anticipation or belief about the effects that alcohol will have, which can influence an individual's drinking behavior and experience.

Aggression

Actions designed to injure or threaten someone, either through physical acts or spoken words.

Dependent Variable

The factor or condition that is measured at the end of an experiment and is presumed to vary as a result of the manipulations of the independent variable(s).

Aggression

Conduct aimed at causing pain or fear in others, manifested through either physical aggression or verbal assaults.