Question $18(4$ points$)$

Luke, CPA issued a standard unqualified audit report on the financial statements of a

client that Luke, CPA knew was in the process of obtaining a loan. In a suit by the

bank issuing the loan, Luke, CPA's best defense would be that the:

Bank was not the CPA's client.

Client was aware of the misstatements.

Bank's identity was known to the CPA prior to completion of the audit.

Audit complied with generally accepted auditing standards.

Bank's identity was not known to the CPA prior to completion of the audit.