Lauren Hires Humphrey,a CPA,to Audit Her Financial Statements

question 37

Multiple Choice

Lauren hires Humphrey,a CPA,to audit her financial statements.The engagement letter includes a statement acknowledging that audited financial statements are needed for a filing with a regulatory body.Humphrey completes the audit and issues an unqualified opinion.Based on the audited financial statements,Key Largo Bank approves a loan to Lauren.Four months later,Lauren files for bankruptcy.Key Largo Bank would most likely sue Humphrey claiming:

• A)It was in privity of the contract
• B)It was a primary beneficiary
• C)It was a foreseen party
• D)It was a foreseeable party

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Definitions:

Polyploidy

The condition of having more than two complete sets of chromosomes in an organism, common in plants and some animal species.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA).

Homozygote Advantage

A situation where individuals with two identical alleles for a certain gene have a selective advantage over heterozygotes.

Polyploidy

The condition in which a cell or organism has more than two complete sets of chromosomes, often found in plants.