Under Common Law,which of the Following Statements Most Accurately Reflects

question 30

Multiple Choice

Under common law,which of the following statements most accurately reflects the liability of a CPA who fraudulently gives an opinion on an audit of a client's financial statements?

• A)The CPA is liable only to third parties in privity of contract with the CPA.
• B)The CPA is liable only to known users of the financial statements.
• C)The CPA probably is liable to any person who suffered a loss as a result of the fraud.
• D)The CPA probably is liable to the client even if the client was aware of the fraud and did not rely on the opinion.

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Definitions:

Predictive Agent

A system or program that uses data analysis and modeling to forecast future events or behaviors, helping in decision making and strategic planning.

Weak AI

Artificial intelligence designed for a narrow task, lacking consciousness or self-awareness, and functions based on rules or data.

Turing Test

A test of a machine's ability to exhibit intelligent behavior equivalent to, or indistinguishable from, that of a human.

Commercial AI

Artificial intelligence applications in commercial sectors aimed at solving business problems or enhancing operational efficiency.