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:

Genetic Identical

Organisms or cells that have exactly the same DNA sequence in all of their genes.

Totipotent

Cells that have the potential to develop into any cell type in an organism, including embryonic and extraembryonic tissues.

Nuclei

Nuclei are the centralized organelles found in eukaryotic cells, containing most of the cell's genetic material (DNA).

Tadpole

The larval stage of amphibians, particularly frogs and toads, characterized by a tail for swimming and gills for breathing.