Under Common Law,which of the Following Statements Most Accurately Reflects

question 27

Multiple Choice

Under common law,which of the following statements most accurately reflects the liability of a CPA who gives a fraudulent opinion on an audit of a client's financial statements?

• A)The CPA is liable only to third parties who are in privity of contract with the CPA.
• B)The CPA is liable only to known users of the financial statements.
• C)The CPA probably is liable to any person who suffered a loss as a result of the fraud.
• D)The CPA probably is liable to the client even if the client was aware of the fraud and did not rely on the opinion.

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Definitions:

Therapeutic Groups

Groups designed to provide psychological therapy and support, often focused on shared experiences or goals.

Teams

Groups of individuals working collaboratively towards a common goal, characterized by complementary skills, mutual accountability, and a shared purpose.

Interpersonal Group

A group formed around social interactions and relationships between its members.

Interpersonal Strengths

Qualities or abilities relating to effective, positive, and constructive interactions with others, enhancing personal and professional relationships.