An Auditor May Be Liable to a Client for Breach

question 40

Multiple Choice

An auditor may be liable to a client for breach of contract under which of the following?

• A) Issues a standard audit report when he or she has not made an audit in accordance with GAAS.
• B) Does not deliver the audit report by the agreed-upon date.
• C) Violates the client's confidential relationship.
• D) All of the above.
• E) None of the above.

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Definitions:

Planning Fallacy

The tendency to underestimate how much time or resources are needed to complete a task, leading to overly optimistic predictions about the future.

Kitchen Remodeling

The process of renovating or redesigning the layout, appearance, and functionality of a kitchen.

Homeowners

Individuals who own the home in which they live, holding either the deed to the property or a mortgage.

Ongoing Threats

Continuing or persistent dangers or risks that require constant vigilance and management.