The Same Three Defenses Available to Auditors in Common Lawsuits

question 76

True/False

The same three defenses available to auditors in common lawsuits by third parties-nonnegligent performance, lack of duty, and absence of causal connection-are also available for suits under the Securities Exchange Act of 1934.

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Definitions:

Universal Core Values

Fundamental principles or beliefs that are widely accepted and upheld across different cultures and societies.

Human Dignity

The inherent worth of all individuals, which entitles them to be treated with respect and fairness.

Corporate Culture

The shared values, beliefs, attitudes, and practices that characterize an organization and guide its employees’ behavior.

Cultural Relativism

The belief that there is no one right way to behave; ethical behaviour is determined by its cultural context.