The Pacific Acceptance case established that:
A)reasonable care and skill means following the auditing standards.
B)auditors have a duty to closely supervise and review the work of inexperienced audit staff.
C)auditors are only liable for the proportion of damages attributable to their actions.
D)auditors have a duty of care only to the shareholders as a group.

Question

Quizplus · Accepted Answer

The Pacific Acceptance case is significant in the field of auditing because it established that auditors have a duty to closely supervise and review the work of inexperienced audit staff. This case highlighted the importance of oversight in the auditing process to ensure the accuracy and reliability of financial statements.

The Pacific Acceptance Case Established That