The Pacific Acceptance Case Established That

question 41

Multiple Choice

The Pacific Acceptance case established that:

• A)reasonable care and skill means following the auditing standards.
• B)auditors have a duty to closely supervise and review the work of inexperienced audit staff.
• C)auditors are only liable for the proportion of damages attributable to their actions.
• D)auditors have a duty of care only to the shareholders as a group.

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Definitions:

Electron Acceptor

A chemical entity that accepts electrons transferred to it from another compound, crucial in energy production and metabolic processes.

Aerobic Respiration

A metabolic process that uses oxygen to convert nutrients into energy, producing carbon dioxide and water as waste products.

Electron Transport Chain

A series of protein complexes located in the inner membrane of mitochondria or the thylakoid membrane of chloroplasts, involved in producing ATP through the process of oxidative phosphorylation.

ATP

Adenosine Triphosphate, a molecule that carries energy within cells, facilitating various cellular processes.