Which of the Following Is True Regarding the Liability of Accountants

question 8

Multiple Choice

Which of the following is true regarding the liability of accountants under the law of Canada?

• A) Canadian law is well settled in relation to an accountant's liability to nonclients.
• B) Canadian law does not recognize liability of an auditor in relation to a prospectus distributed with the auditor's filed consent by an issuer of securities containing misrepresentations.
• C) Canadian law does not recognize liability on the part of an auditor for misrepresentations made in secondary-market disclosures made with the auditors' written consent.
• D) As in the U.S., in Canada the common law holds accountants liable for negligence to clients.
• E) In Quebec alone, accountants may not be held liable even if a causal link between fault and damage is established.

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Definitions:

Urethral Meatus

The external opening of the urethra, through which urine exits the body in both males and females, and also serves as a passage for semen in males.

Hypospadias

A congenital condition in males where the urethra opens on the underside of the penis rather than at the tip.

Phimosis

A condition where the foreskin of the penis cannot be fully retracted over the glans, often requiring medical attention in severe cases.

Scrotal Sac

An external pouch of skin containing the testicles and part of the spermatic cord, playing a role in regulating testicular temperature.