If an Auditor Is Unsuccessful in Using the Lack of Duty

question 39

Multiple Choice

If an auditor is unsuccessful in using the lack of duty defense to have a case dismissed in a third-party suit, the preferred defense is

• A) lack of duty to perform.
• B) nonnegligent performance.
• C) absence of causal connection.
• D) client fraud.

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Definitions:

Intuition

The capacity to grasp concepts instantaneously, without relying on deliberate thought.

Overconfident

A psychological condition where an individual's belief in their own abilities or chances of success exceeds reality.

Hindsight Bias

The inclination to think that one could have predicted an outcome after it has occurred, commonly known as the "I-knew-it-all-along" effect.

Scientific Inquiry

The process of systematically gathering and evaluating evidence to answer questions and test hypotheses about the natural world.