Management Failed to Put in a System of Adequate Internal

question 7

Multiple Choice

Management failed to put in a system of adequate internal controls. The public accounting firm uncovered the weakness, but did not report it to the Board members of the company. What kind of liability, if any, would the auditors be exposed to?

• A) breach of contract
• B) contributory negligence
• C) a and b
• D) no liability

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Definitions:

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The concept that complex traits and behaviors are influenced by the interaction of numerous genetic factors.