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.