Which of the Following Is NOT an Element of a Successful

question 56

Multiple Choice

Which of the following is NOT an element of a successful negligence action against auditors?

• A)There must be proof that damage resulted.
• B)The plaintiff must be a known user of the financial statements.
• C)There must be a legal duty of care to the plaintiff.
• D)There must be a reasonable connection between the breach of duty of care and resulting losses.

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Definitions:

Unpaid Balance

The portion of a loan or debt that has not yet been repaid to the lender.

Department Store

A large retail establishment that sells a wide variety of goods in various departments within the same building.

Effective Rate

The actual interest rate an investor receives after taking into consideration compounding.

Monthly Compounded Rate

An interest rate applied to the principal and the accumulated interest of a loan or investment on a monthly basis.