Which of the Following Statements Regarding the Auditor's Responsibility to Third

question 1

Multiple Choice

Which of the following statements regarding the auditor's responsibility to third parties is correct?

• A) The auditor has no legal responsibility to third parties.
• B) Third parties can sue the auditor under contract for any losses suffered.
• C) The auditor owed the third party a duty of care, was negligent in the conduct of the audit and suffered a loss.
• D) Third parties must establish that the auditor owed them a duty of care and the auditor was negligent.

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Definitions:

Mutation Rate

The frequency at which new genetic mutations occur in a given genome over a specified time frame.

Polyphenic Traits

Traits that exhibit several phenotypic expressions depending on environmental or genetic factors.

Phenotypic Plasticity

The skill of an organism to adjust its phenotype in accordance with changes in its surroundings.

Genetic Polymorphism

The existence of two or more distinct alleles at a given locus in a population’s genome.