To which of the following parties does the auditor owe a duty of care under contract?
A)The company itself.
B)The board of directors.
C)Shareholders as individuals.
D)Potential investors.

Question

Quizplus · Accepted Answer

The auditor owes a duty of care under contract to the company itself as they are hired and paid by the company to audit its financial statements. The auditor's responsibility is to provide an independent opinion on the accuracy of the company's financial statements for the benefit of the company and its stakeholders. The board of directors, shareholders, and potential investors may benefit from the audit, but the primary responsibility of the auditor is to the company.

To Which of the Following Parties Does the Auditor Owe