As Set Forth in the Case in the Text, Bily

question 47

Multiple Choice

As set forth in the case in the text, Bily v. Arthur Young & Co., which of the following is true regarding auditor liability to third parties under the Restatement rule?

• A) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose generally undertakes no duty to third parties.
• B) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose does undertake a duty to any foreseeable third-party users.
• C) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose undertakes a duty only to third parties who are financial institutions.
• D) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose generally undertakes a duty only to directors of the company who provide loans to the company.
• E) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose generally undertakes no duty to third parties except for financial institutions and also directors who provide loans to a company.

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Definitions:

Percent on Public Assistance

Percent on Public Assistance refers to the proportion of individuals or households within a population that rely on governmental financial aid programs for their subsistence.

Homicide Rate

A measure indicating the number of homicides in a given area or population over a specified period of time.

Data

Information and figures compiled for analyzing or referring.

Y-intercept

The point where a line crosses the y-axis of a graph, reflecting the value of the dependent variable when the independent variable is zero.