Simon & Shaw, a CPA firm, issued an unmodified audit report for its client, Zing ManufacturingCorporation (ZMC), a footwear manufacturer with shares traded on a Canadian stock exchange.Simon & Shaw knew the company was in the process of refinancing a significant bank loancoming due and the bank was anxious to see the year-end results. Once the unmodified auditreport and opinion were issued, the local stock exchange regulator halted trading of ZMC sharesafter allegations of management fraud came to light. As a result, the share price of ZMCplummeted and the company fell into bankruptcy.

What are two (2) legal defenses are available to Simon & Shaw?

Answer rating: 100% (QA)

1 They can go for lack of evidence against them since ... View the full answer