Accuracy Group, an Accounting Firm, Has Been Given a Deadline

question 25

Multiple Choice

Accuracy Group, an accounting firm, has been given a deadline by its client to prepare an audit report by February 28. The deadline was proposed by a prospective lender to the client. Accuracy Group agrees to complete the audit by February 28. If the audit report is not finished until after the deadline, then Accuracy Group would:

• A) be liable even if the delay occurred because the client obstructed performance of the audit.
• B) not be liable if it had other deadlines to meet at the same time.
• C) be liable for the client's resulting loss if the lender has no more funds available at that time.
• D) not be liable if it had delegated its responsibilities to another accounting firm.

---

Definitions:

Ask Questions

The act of posing inquiries or seeking information from another person or source to gain understanding or clarify doubts.

Centralized Power Distribution

A system where the control and decision-making authority is concentrated in a central location or group, often within an organization or network.

Individualism

A moral, political, or social outlook that emphasizes the moral worth of the individual and the pursuit of individual goals.

Authority

The power or right to make decisions, give orders, and enforce obedience.