In the Caparo Case, the Court Held That the Auditor

question 2

Multiple Choice

In the Caparo case, the court held that the auditor owes a duty of care to:

• A)all users of the published financial report.
• B)only those parties specified in the engagement letter.
• C)the shareholders as a body, but not individual shareholders or third parties.
• D)all shareholders, but not third parties.

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Definitions:

Preschoolers

Children who are in the developmental stage just before they enter elementary school, typically aged between 3 to 5 years.

Secondary Education

The stage of education following primary education, typically including high school or equivalent, which prepares students for higher education or vocational training.

Tertiary Education

Education at the post-secondary level, including universities, colleges, and vocational schools, following primary and secondary education.

Primary Education

The first stage of formal education in many countries, designed for young children by providing basic reading, writing, and mathematical skills along with an elementary understanding of other subjects.