How Does the Principle of "Joint and Several Liability" Affect

question 50

Multiple Choice

How does the principle of "joint and several liability" affect auditors in countries where it is applied?

• A) This limits civil liability to only those people who conducted the audit negligently.
• B) All partners in the accounting firm can be personally liable for the negligence of any one partner.
• C) All audit partners are liable for the actions of the firm only up to the level of their investment in the firm.
• D) It creates limited liability for auditors accused of wrong-doing by their clients.

---

Definitions:

Auxiliary Section

A part of a larger system or device designed to provide additional support, functionality, or capacity beyond the primary operations.

Main Section

The primary or central part of something, particularly in the context of a document, machine, or organization.

Multiplexing

A technique that enables multiple signals or data streams to be combined and transmitted over a single physical medium, improving efficiency in communication systems.

Synchronize

The process of making two or more processes, devices, or systems operate in unison by matching their speeds, frequencies, or timings.