As Set Forth in the Case in the Text, Bily

question 47

Multiple Choice

As set forth in the case in the text, Bily v. Arthur Young & Co., which of the following is true regarding auditor liability to third parties under the Restatement rule?

• A) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose generally undertakes no duty to third parties.
• B) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose does undertake a duty to any foreseeable third-party users.
• C) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose undertakes a duty only to third parties who are financial institutions.
• D) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose generally undertakes a duty only to directors of the company who provide loans to the company.
• E) An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose generally undertakes no duty to third parties except for financial institutions and also directors who provide loans to a company.

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Definitions:

Early 1970s

A period marked by significant cultural, political, and technological changes worldwide, roughly spanning from 1970 to 1974.

Polarization Between Jobs

The growing divide in job quality and security, often leading to high-wage, highly skilled jobs at one extreme and low-wage, insecure jobs at the other.

Recent Changes In Work

Transformations in the labor market, work environments, and job structures, driven by factors such as technology, globalization, and social trends.

Workplace Redefinition

The process of changing the understanding or composition of the work environment, often due to technological advancements, societal shifts, or changes in workforce expectations.