What Is the Key to Limiting the Duty of Care

question 68

Multiple Choice

What is the key to limiting the duty of care owed by an auditor to third parties as defined by the foreseeability principle?

• A) statutory prohibition against reliance by third parties
• B) purpose of performing an audit is mandated by law
• C) statutory amendment allowing limited liability partnerships
• D) disclaimer against reliance on the information by third parties

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Definitions:

Freudian Theory

A set of psychoanalytic theories related to unconscious desires, childhood experiences, and defense mechanisms.

Ambiguous

Describes information, statements, or situations that can be understood or interpreted in more than one way.

Psychosexual Stages

A series of stages in Freudian theory through which a child’s personality develops, each characterized by erogenous zones and conflicts.

Mature Sexual Relationships

Relationships that involve deep emotional connections, mutual respect, and a healthy perspective on sexual activity within the context of the relationship's overall dynamics.