Under Common Law,which of the Following Statements Most Accurately Reflects

question 30

Multiple Choice

Under common law,which of the following statements most accurately reflects the liability of a CPA who fraudulently gives an opinion on an audit of a client's financial statements?

• A)The CPA is liable only to third parties in privity of contract with the CPA.
• B)The CPA is liable only to known users of the financial statements.
• C)The CPA probably is liable to any person who suffered a loss as a result of the fraud.
• D)The CPA probably is liable to the client even if the client was aware of the fraud and did not rely on the opinion.

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Definitions:

PLC Motion Control System

A PLC (Programmable Logic Controller) Motion Control System is an automated system that uses PLCs to manage and control the movement of machinery, components, or the system itself, offering precise control over complex motion tasks.

Servo Motors

Motors that incorporate a feedback mechanism to control the speed and position accurately, commonly used in precision positioning tasks.

Open Communications Networks

Networks that support communication protocols which are publicly available and can be used across different platforms and devices.

Proprietary Protocol

A communication protocol developed by a specific company for exclusive use, often causing compatibility issues with other systems.