When creditors who relied on an entitys audited financial statements suffer monetary losses after a customer (the
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a. The auditors knew and specifically acknowledged identification of the creditors.
b. The auditors could reasonably foresee them as beneficiaries of the audit because entities such as this client use financial statements to obtain credit from vendors.
c. The plaintiffs were foreseen users of the audited financial statements because they were vendors of long standing.
d. All of the above.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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