If a CPA firm is being sued for common law fraud by a third party based upon

Question:

If a CPA firm is being sued for common law fraud by a third party based upon materially false financial statements, which of the following is the best defense the auditors could assert?
a. Lack of privity.
b. Lack of reliance.
c. A disclaimer contained in the engagement letter.
d. Contributory negligence on the part of the client.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Auditing and Assurance Services

ISBN: 978-0077862343

6th edition

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

Question Posted: