A CPA Who Fraudulently Performs an Audit of a Corporation's

question 33

Multiple Choice

A CPA who fraudulently performs an audit of a corporation's financial statements will:

• A)probably be liable to any person who suffered a loss as a result of the fraud.
• B)be liable only to the corporation and to third parties who are members of a class of intended users of the financial statements.
• C)probably be liable to the corporation even though its management was aware of the fraud and did not rely on the financial statements.
• D)be liable only to third parties in privity of contract with the CPA.

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Definitions:

Working Distance

The distance between the objective lens of a microscope and the surface of the sample being observed.

Objective Lens

A component of a microscope closest to the object being examined, focusing light or electrons to produce a magnified image.

Ocular Lens

A transparent structure in the eye that helps to refract light to be focused on the retina, enabling vision.

MINITAB Output

The results or output generated from analysis conducted using the MINITAB statistical software.