When the Client and the Auditor Are Both Sued and Judgment

question 95

Multiple Choice

When the client and the auditor are both sued and judgment is rendered against both,the auditor will be required to settle the entire judgment if the client is bankrupt.Which of the following is a representation of the above?

• A)Private Litigation Reform.
• B)Joint and several liability statutes.
• C)Comparative fraud.
• D)The Securities Acts.

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Definitions:

Demand Curve

A graphical representation that shows the quantity of a product or service desired by buyers at various price levels.

Tax

Mandatory financial charges or other types of levies imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or as inputs to production.

Tax Revenue

The financial returns that governments earn from taxes.