How Does the Principle of "Joint and Several Liability" Affect

question 50

Multiple Choice

How does the principle of "joint and several liability" affect auditors in countries where it is applied?

• A) This limits civil liability to only those people who conducted the audit negligently.
• B) All partners in the accounting firm can be personally liable for the negligence of any one partner.
• C) All audit partners are liable for the actions of the firm only up to the level of their investment in the firm.
• D) It creates limited liability for auditors accused of wrong-doing by their clients.

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Definitions:

Fungus

A group of eukaryotic organisms, including molds, yeast, and mushrooms, that are distinct from plants, animals, and bacteria.

Melanin

A pigment found in the skin, hair, and eyes that is responsible for their color and helps protect against UV radiation.

Acrochordon

Small, benign skin growths, often referred to as skin tags.

Lentigo

A small, clearly defined pigmented spot on the skin with a darker color than the surrounding area, often caused by sun exposure.