In Third Party Suits, When There Is a Misstatement in the Financial

question 11

Multiple Choice

In third party suits, when there is a misstatement in the financial statements, which of the auditor's defences usually means non-reliance on the financial statements by the user?

• A) lack of duty
• B) non-negligent performance
• C) contributory negligence
• D) absence of causal connections

---

Definitions:

Inconsistent

Showing variance and lack of uniformity or stability in thoughts, actions, or quality over time.

Unsystematic

Lacking a plan, method, or coherence, often referring to information or actions that are disorganized or random.

Rigid

Describes an inability or unwillingness to adapt or change one's thoughts, behaviors, or attitudes despite new information or changing circumstances.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.