An Auditor Knew That the Purpose of Her Audit Was

question 4

Multiple Choice

An auditor knew that the purpose of her audit was to render reasonable assurance on financial statements that were to be used for the application for a loan;the auditor did not know the identity of the bank that would eventually give the loan.Under the Restatement of Torts approach to liability,the auditor is generally liable to the bank which subsequently grants the loan for:

• A)Lack of due diligence.
• B)Lack of good faith.
• C)Gross negligence,but not ordinary negligence.
• D)Either ordinary or gross negligence.

---

Definitions:

False Confessions

Admissions of guilt for a crime one did not commit, which can be the result of various factors, including coercion, fatigue, or the misinterpretation of evidence.

Adolescent Smokers

Young individuals, typically in their teenage years, who regularly engage in smoking tobacco, which poses significant health risks.

Legal Smoking Age

The minimum age at which an individual is legally permitted to purchase and consume tobacco products in a particular jurisdiction.

Tobacco Sales

The commercial activity of selling products made from the dried leaves of the tobacco plant, such as cigarettes.