As Set Forth in the Case in the Text,Bily V

question 25

Multiple Choice

As set forth in the case in the text,Bily v.Arthur Young & Co. ,which of the following is true regarding auditor liability to third parties under the Restatement rule?

• A)An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose generally undertakes a duty only to directors of the company who provide loans to the company.
• B)An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose does undertake a duty to any foreseeable third party users.
• C)An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose undertakes a duty only to third parties who are financial institutions.
• D)An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose generally undertakes no duty to third parties except for financial institutions and also directors who provide loans to a company.
• E)An auditor retained to conduct an annual audit and to furnish an opinion for no particular purpose generally undertakes no duty to third parties.

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Definitions:

Animal Welfare

The humane and ethical treatment of animals, ensuring their health, comfort, and well-being are prioritized.

Conscious Marketing

An approach to marketing that acknowledges the broader concerns of society, including ethical, environmental, and social issues.

Corporate Social Responsibility

Refers to the ethical obligation of companies to contribute to the betterment of society and minimize negative impacts on the environment and communities.

Business Model

A conceptual framework that outlines how a company creates, delivers, and captures value.