Which of the Following Is the Best Defense Auditors Can

question 11

Multiple Choice

Which of the following is the best defense 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.

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Definitions:

High Turnover

The rapid rate at which an organization loses and must replace its employees, often indicating issues with employee satisfaction or engagement.

Delegating Decision Making

The process by which authority to make certain decisions is transferred from one individual, often a manager, to another person or group.

Integration

The process of combining separate parts or elements into a whole, often used in the context of systems, businesses, and technologies to improve efficiency or coherence.

Common Goals

Objectives shared by members of a group that provide a common direction and unite their efforts.