Which of These Cases Established the Legal Principle That Auditors

question 36

Multiple Choice

Which of these cases established the legal principle that auditors owe a duty of care to shareholders as a group and not to individual shareholders?

• A)Caparo.
• B)Esanda.
• C)Pacific Acceptance.
• D)Scott Group.

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Definitions:

Rational Understanding

Involves comprehending matters or concepts based on reason, logic, and factual evidence, distinguishing between logical and illogical arguments.

Career Criminals

Persons who engage in criminal activity as their main occupation, often repeatedly committing crimes and having multiple convictions.

Theory of Punishment

The systematic examination of the principles and justifications behind penalizing individuals for committing crimes.

Indeterminate Sentences

Sentencing that does not assign a fixed amount of time but rather a range in which an offender may be released, based on behavior and rehabilitation.