Under Common Law,which of the Following Statements Most Accurately Reflects

question 30

Multiple Choice

Under common law,which of the following statements most accurately reflects the liability of a CPA who fraudulently gives an opinion on an audit of a client's financial statements?

• A)The CPA is liable only to third parties in privity of contract with the CPA.
• B)The CPA is liable only to known users of the financial statements.
• C)The CPA probably is liable to any person who suffered a loss as a result of the fraud.
• D)The CPA probably is liable to the client even if the client was aware of the fraud and did not rely on the opinion.

---

Definitions:

Social Exchange Theorist

A scholar or researcher who studies how human relationships are formed and sustained based on the principles of mutual exchange of resources, benefits, and costs.

Conflict Theorists

are scholars and sociologists who analyze social life by focusing on the distribution of power and the conflicts that result from differing interests and social inequalities.

Laboratory Experiments

Controlled tests carried out in a lab setting to study behaviors, reactions, or phenomena under replicated conditions.

Clinical Research

is the study of health and illness in people, focusing on improving knowledge of diseases, developing diagnostic methods, and finding new treatments or cures.