Which of the Following Is a Correct Statement Related to CPA

question 26

Multiple Choice

Which of the following is a correct statement related to CPA legal liability under common law?

• A)CPAs are normally liable to their clients,the shareholders,for either ordinary or gross negligence.
• B)CPAs are liable for either ordinary or gross negligence to identified third parties for whose benefit the audit was performed.
• C)CPAs may escape all personal liability through incorporation as a limited liability corporation.
• D)CPAs are guilty until they prove that they performed the audit with "good faith."

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Definitions:

Trained Employees

Workers who have been provided with specific skills and knowledge to perform their jobs effectively and efficiently.

Free Delivery

A service where goods are transported from the seller to the buyer at no additional cost to the customer, often used as a marketing strategy to encourage purchases.

Scheduling

The process of planning and organizing tasks or events by allocating resources and setting specific time frames for completion.

Motivating Employees

The process of providing incentives, encouragement, and an environment that stimulates employees to achieve their best performance and engagement.