Refer to Fact Pattern 8-1

question 19

Multiple Choice

Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is​

• A)enforceable as the consideration is past.
• B)enforceable because of unforeseen difficulties.
• C)unenforceable as an illusory promise.
• D)unenforceable due to the preexisting duty rule.

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Definitions:

Professional

An individual who has specialized skills, knowledge, and expertise in a particular field or occupation, typically acquired through education and training.

Generally Accepted Auditing Standards (GAAS)

The principles auditors must adhere to while conducting audits on companies' financial statements.

Professional Care

The provision of services that meet the standards of practice within a specific profession, particularly in healthcare, legal, or financial services.

Auditor

A professional who examines and evaluates the financial statements of an entity to ensure accuracy and compliance with accounting standards.