Which of the Following Is an Illustration of Liability to Clients

question 99

Multiple Choice

Which of the following is an illustration of liability to clients under common law?

• A)Client sues auditor for not discovering a theft of assets by an employee.
• B)Bank sues auditor for not discovering that borrower's financial statements are misstated.
• C)Combined group of stockholders sue auditor for not discovering materially misstated financial statements.
• D)The federal government prosecutes the auditor for knowingly issuing an incorrect audit report.

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Definitions:

Gender Egalitarianism

The belief in and promotion of equal rights, responsibilities, and opportunities for all genders.

Masculine And Feminine

Terms that describe societal roles, behaviors, and attributes traditionally associated with men and women, respectively.

Humane Orientation

A cultural dimension highlighting the degree to which an organization or society encourages and rewards individuals for being fair, altruistic, generous, and kind to others.

Societies

Groups of individuals living together in ordered communities with shared laws, traditions, and values, forming the basis of a cohesive and functioning whole.