The Decision in the Caparo Case (1990) Reduced the Duty

question 32

Multiple Choice

The decision in the Caparo case (1990) reduced the duty of care of auditors to:

• A) all users known to the auditor.
• B) all users that ought reasonably to have been known to the auditor.
• C) the shareholders as a group.
• D) all users of the financial statements, except for investors.

---

Definitions:

One-way ANOVA

A statistical method used to compare the means of three or more independent groups to determine if there is a statistically significant difference among them.

F-ratio

The F-ratio is a statistic used in analysis of variance (ANOVA) to compare the variability between groups to the variability within groups, assessing whether group means are significantly different.

F-ratio

A statistical measure used in the context of ANOVA to determine the ratio of variance between groups to the variance within groups.

SAMPLE Size

The total number of subjects included in a study or sampled from a population.