[Accountant Dissatisfaction] Andrew Agreed to Perform Accounting Services for Dominique

question 76

Multiple Choice

[Accountant Dissatisfaction] Andrew agreed to perform accounting services for Dominique, and they entered into a contract setting forth the terms of their agreement. Dominique wanted Andrew to review her financial information and her system of internal controls. Dominique became dissatisfied with Andrew's work after he reported some irregularities in her financial statements. Andrew, on the other hand, claimed that he had adequately performed his duties and that, at the most, any mistakes that he made were minimal.
-Which of the following would be available to Dominique, assuming that she can establish that Andrew failed to meet his contractual obligations?

• A) Only a recovery for the cost of obtaining a different accountant to perform breached contractual duties.
• B) Reasonable and foreseeable damages related to the breach, excluding the cost of another accountant to perform breached contractual duties.
• C) Reasonable and foreseeable damages related to the breach and damages for fraud which would be presumed.
• D) The cost of obtaining a different accountant to perform breached contractual duties and also any reasonable and foreseeable damages related to the breach.
• E) Nothing unless the contact specifically provides for damages in the event of a breach.

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Definitions:

Loanable Funds

Refers to the funds available for borrowing in the financial markets, determined by the savings of households and organizations.

Public Debt

The total amount of money owed by the government to creditors, often as a result of borrowing to finance public spending.

Loanable Funds

The market where savers supply funds to borrowers, typically facilitated through financial institutions, influencing interest rates.

Interest Rate

The cost of borrowing money expressed as a percentage of the total amount loaned, paid by the borrower for the use of funds.