A Privity Letter Should NOT Be Provided

question 15

Multiple Choice

A privity letter should NOT be provided:

• A) under any circumstances.
• B) if the audit is being conducted under the Corporations Act.
• C) if the third party seeking it fails to acknowledge in writing the potential inadequacy of the audit report for its purpose.
• D) if reliance is foreseeable.

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Definitions:

Temporal Lobe

A region of the cerebral cortex responsible for processing auditory information, as well as being involved in memory and speech.

Frontal Lobe

Part of the cerebral cortex involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Occipital Lobe

The region of the cerebral cortex at the back of the brain, responsible for processing visual information.

Temporal Lobe

A region of the cerebral cortex responsible for processing auditory information and is also involved in memory and speech.