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:

Pneumatic Tools

Tools powered by compressed air, used in various applications including construction and manufacturing for tasks like drilling, hammering, and painting.

Dynamometer

A device used to measure the force, torque, or power output of an engine, motor, or other rotating machines.

Toxic

Poisonous.