Hussain & Shah, a medium- sized audit firm, employed Sonya as a staff accountant. Sonya was negligent while auditing several of the firm's clients. Under these circumstances, which of the following statements is True?
A) Hussain & Shah is not liable for Sonya's negligence because auditors are generally considered to be independent contractors.
B) Sonya would have no personal liability for negligence.
C) Hussain & Shah would not be liable for Sonya's negligence if she disobeyed specific instructions in the performance of the audits.
D) Hussain & Shah can recover against its insurer on its malpractice policy even if one of the partners was also negligent in reviewing Sonya's work.
Correct Answer:
Verified
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