Which of the Following Is Not a Basis for a Third-Party

question 17

Multiple Choice

Which of the following is not a basis for a third-party lawsuit against an auditor?

• A)Common law.
• B)Breach of contract.
• C)Gross negligence.
• D)Fraud.

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Definitions:

Financial Theory

The study of economics that examines ways to manage and allocate financial resources, analyzing financial systems and markets.

Economics

The discipline within social science that examines the decision-making process of individuals, governments, companies, and countries in distributing resources to fulfill their desires and requirements.

S Corporations

A special tax status granted to certain corporations, allowing income to be passed through to shareholders and taxed at individual rates.

Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business.