Which of the Following Factors Would Not Influence Third Parties

question 18

Multiple Choice

Which of the following factors would not influence third parties' abilities to bring suit against auditors for ordinary negligence under common law?

• A)The extent to which the third party relied upon the misstated financial statements and this reliance resulted in their loss.
• B)The nature of activity by auditors that resulted in their failure to exercise appropriate levels of professional care.
• C)The relationship between the auditors and third party.
• D)The jurisdiction in which the action occurred.

---

Definitions:

Limited Partnership

A partnership structure where at least one partner has unlimited liability (general partner) and the rest have limited liability (limited partners), protecting them from debts beyond their investment.

Certificate of Limited Partnership

A legal document filed with a state by the general partners of a limited partnership that details the partnership's structure and operations.

Secretary of State

A high-ranking government official responsible for foreign affairs in the United States, or state government affairs in some U.S. states.

Limited Liability

A legal structure that limits the financial responsibility of an entity's owners or shareholders to the amount they have invested, protecting personal assets from business debts.