A Principle That May Reduce or Eliminates Auditors' Liability to Clients

question 20

Multiple Choice

A principle that may reduce or eliminates auditors' liability to clients is:

• A)Client's constructive negligence.
• B)Client's contributory negligence.
• C)Auditors' ordinary negligence.
• D)Auditors' gross negligence.

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Definitions:

Voting Power

The ability or right of an individual or group to cast a vote in an election or decision-making process.

Transfer Ownership

The act of transferring the rights, title, and interest in property or assets from one party to another, usually through sale, gift, or inheritance.

Dividends

A share of profits distributed by a corporation to its shareholders, typically made as a fixed payment per share of stock.

Free Market Ethical Perspective

An ethical viewpoint that emphasizes the importance of allowing markets to operate without undue government interference, advocating for voluntary transactions and individual liberty.