Which of the Following Is the Best Defense That a CPA

question 6

Multiple Choice

Which of the following is the best defense that a CPA can assert against common law litigation by a stockholder claiming fraud based on an unqualified opinion on materially misstated financial statements?

• A)Lack of due diligence.
• B)Due professional care.
• C)Contributory negligence on the part of the client.
• D)A disclaimer contained in the engagement letter.

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Definitions:

Buffalo Herds

Groups of buffalo that roam together, often found in North America and played a significant role in the ecosystem and Native American cultures.

Homestead Act

A United States federal law passed in 1862 that granted 160 acres of public land to any individual who would farm it for at least five years.

Railroads

A transportation system consisting of a track of rails on which trains travel, used for moving passengers and goods over long distances efficiently.

Dawes Act

A law passed in 1887 that aimed to assimilate Native Americans into US society by allotting individual land parcels to heads of families, stripping away communal tribal land.