In Third-Party Suits, Which of the Auditor's Defenses Contends No

question 48

Multiple Choice

In third-party suits, which of the auditor's defenses contends no implied or expressed contract?

• A)Lack of duty
• B)Non-negligent performance
• C)Contributory negligence
• D)Absence of causal connections

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Definitions:

Cost of Equity

Cost of equity is the return that investors expect from an investment in a company, considering the risk of investing in its equity.

Stock Split

An action taken by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, though the market value of the company does not change.

Market Price

The rate at which an asset or service is currently trading in the market.

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.