In a Common Law Action Against Auditors,lack of Privity Is

question 40

Multiple Choice

In a common law action against auditors,lack of privity is a viable defense if the plaintiff

• A) Is the client's creditor who sues auditors for ordinary negligence.
• B) Can prove auditors' gross negligence that amounts to a reckless disregard for the truth.
• C) Is the auditors' client.
• D) Bases the action upon fraud.

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Definitions:

Classical Approaches

Traditional methods or theories in fields such as management, focusing on hierarchical structure, efficiency, and the division of labor.

Behavioural Approaches

Psychological strategies or treatments that focus on modifying observable actions and behaviors as a means to improve mental health and well-being.

Quantitative Approaches

A methodology that emphasizes objective measurements and statistical or mathematical analysis to derive conclusions.

Learning Organisation

An organization that facilitates the learning of its members and continuously transforms itself to better adapt and thrive in a changing environment.