When an Auditor Is Found Guilty of a Fraudulent Misrepresentation,there

question 10

Multiple Choice

When an auditor is found guilty of a fraudulent misrepresentation,there is liability owed to ________.

• A)third parties with privity and contracted parties
• B)any party that suffered a loss
• C)shareholders only
• D)all parties with privity

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Definitions:

Effort

The amount of physical or mental energy put into a task or activity to achieve a particular outcome.

Task

A piece of work to be done or undertaken, often forming part of a larger project or job role.

Reinforcement Theory

A concept in psychology that suggests behavior can be shaped by rewarding or punishing outcomes.

Intrinsic Motivation

The internal drive to perform an activity for its own sake and for the personal rewards it brings.