To Which of the Following Parties Does the Auditor Owe

question 1

Multiple Choice

To which of the following parties does the auditor owe a duty of care under contract?

• A)The company itself.
• B)The board of directors.
• C)Shareholders as individuals.
• D)Potential investors.

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Definitions:

Helpless

A state or feeling of having no power or control over a situation or oneself.

Associative-Link

A cognitive connection between two ideas, concepts, or events, formed through the process of learning or experience.

Contiguity

The temporal pairing of two events

Drive Reduction

A theory in psychology suggesting that motivation arises from the need to reduce internal drives such as hunger or thirst, leading to certain behaviors.