In General, the Third-Party (Primary)beneficiary Rule as Applied to a CPA's

question 58

Multiple Choice

In general, the third-party (primary) beneficiary rule as applied to a CPA's legal liability in conducting an audit is relevant to which of the following causes of action against a CPA?

• A)Fraud and constructive fraud, but not negligence.
• B)Fraud, but not constructive fraud or negligence.
• C)Constructive fraud and negligence, but not fraud.
• D)Negligence, but not fraud or constructive fraud.

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Definitions:

Stimulate Economy

Initiatives or policies undertaken to encourage economic growth or enhance economic performance.

Rational Approach

A decision-making process based on logical, systematic analysis of data and information to optimize outcomes.

Aggregate Demand

This is the total demand for all goods and services within an economy at a given overall price level and in a given time period.

Potential Output

The highest level of real GDP that an economy can achieve when using its resources fully and efficiently, without causing inflation.