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:

Basket Of Goods

A collection of products or services considered representative for purposes of measuring inflation or cost of living.

Base Year

A specific year against which economic or financial data is compared to measure changes and trends over time.

Price

The amount of money required to purchase a good, service, or asset.

Inflation

The speed at which prices for general goods and services go up, resulting in a decline in how much money can buy.