For Auditors to Be Liable to Third Parties for Negligence,a

question 48

True/False

For auditors to be liable to third parties for negligence,a duty of care must exist.

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Definitions:

Equity Investments

Financial contributions made into companies by purchasing shares in order to gain partial ownership and potentially share in the profits.

Distribution Sources

Channels or intermediaries through which products or services are made available to consumers.

Franchisor

A business entity that grants a license to a third party for the conducting of a business under the franchisor's marks, name, and business model.

Franchise Agreement

A legal contract between a franchisor and franchisee, outlining the terms for operating a franchised business.