The Ultramares Doctrine Established That Auditor Liability Does Not Extend

question 19

True/False

The Ultramares doctrine established that auditor liability does not extend to third parties in cases involving ordinary negligence.

---

Definitions:

Variable Costs

Costs that vary in direct proportion to the level of production or business activity.

Fixed Costs

Costs that do not vary with the level of production or sales, such as salaries, rent, and insurance.

Logistics Department

The division within a company that is responsible for the management of the movement of goods and materials.

West Division

A geographical or organizational sector of a company that focuses on operations or markets in the western region.