Which of the Following Is the Best Defense That Auditors

question 68

Multiple Choice

Which of the following is the best defense that auditors can assert in a suit for common law fraud based on their unqualified opinion on materially misstated financial statements?

• A) Contributory negligence on the part of the client.
• B) A disclaimer contained in the engagement letter.
• C) Lack of privity.
• D) Lack of scienter.

---

Definitions:

Disabilities

Conditions that limit an individual's physical, mental, or sensory abilities, affecting their daily life and activities.

Single Family

A term typically referring to a household consisting of one set of parents and their biological or adopted children living in a single dwelling.

Consultant

A professional who provides expert advice in a particular area or specialized field to improve client outcomes.

Role

A set of expectations or functions associated with a particular position or status within a group or society.