Mary Ellen Dillon Is an Audit Partner with a Large

question 64

Multiple Choice

Mary Ellen Dillon is an audit partner with a large public accounting firm. Recently, one of her long-standing clients suddenly filed for bankruptcy protection. Mary Ellen's firm had previously issued an unqualified opinion on the client's financial statements. As a result, Mary Ellen's firm is being sued for negligence. Mary Ellen's best defense would be:

• A) To challenge standing on the part of the defendant.
• B) To cite the professional standards and maintain that the firm met the "prudent person" standard.
• C) To cite the client's responsibility for the financial statements.
• D) All of the above.

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Definitions:

Media Conglomerates

Large corporations that own a vast array of media companies across different types of media outlets, such as television, radio, publishing, movies, and the internet.

Daily Newspapers

Publications that contain news, information, and advertisements, issued every day or every weekday.

Gannett

An American mass media holding company recognized as one of the largest newspaper publishers in the United States.

Objective Reporting

Journalism that aims to report facts without bias, ensuring fairness and neutrality in news coverage.