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:

Transpiration

Evaporation of water from aboveground plant parts.

Polar Latitudes

Regions near the poles of the Earth, characterized by extreme cold and seasonal variations in daylight.

Equatorial Latitudes

The region near the equator, characterized by a hot climate year-round due to receiving the most direct sunlight.

Temperate Latitudes

Regions of the Earth lying between the tropics and the polar circles, characterized by moderate temperatures and distinct seasonal changes.