Smart Issued an Unmodified Auditor's Opinion on the 2012 Financial

question 9

Multiple Choice

Smart issued an unmodified auditor's opinion on the 2012 financial report of Max Ltd, which was filed with ASIC.Smart did not detect material misstatements in the financial report as a result of negligence in the performance of the audit. Based upon the financial report, Bird purchased shares in Max Ltd. Shortly afterwards, Max Ltd
Became insolvent, causing the price of the shares to decline drastically. Bird has commenced legal action
Against Smart for damages. Smart's best defence to such an action would be that:

• A) Bird lacks a contractual relationship as a basis to sue.
• B) the engagement letter specifically disclaimed all liability to third parties.
• C) there is no proof of proximity.
• D) there has been no subsequent sale for which a loss can be calculated.

Acknowledge the impact of first impressions and reputations in virtual settings.

Understand the impact of social norms on emotional expression in computer-mediated communication.

Identify the effects of absence of face-to-face interaction on team dynamics in a virtual environment.

Recognize strategies for demonstrating integrity within virtual teams.

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Definitions:

Willingness To Pay

The maximum price at which a consumer is prepared to buy a good or service, reflecting the perceived value of the product to the consumer.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by everyone and one person's consumption does not diminish another's.

Marginal Cost

The cost incurred by producing one additional unit of a product, reflecting changes in variable costs.

Public Good

An offering of goods or services to the entire population of a society free of charge, provided by governmental bodies or private parties, without the aim of earning a profit.