Assume that a client has encountered a $500,000 fraud and that the CPA's percentage of responsibility established at 10%, while the company itself was responsible for the other 90%. Under which approach to liability is the CPA most likely to avoid liability entirely?

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Quizplus · Accepted Answer

The contributory negligence approach holds that if the plaintiff contributed in any way to their own loss, they cannot recover damages from the defendant. In this case, since the company was responsible for 90% of the fraud, it is unlikely that the CPA's 10% contribution would be enough to prevent the company from being considered a contributor to the fraud. Therefore, under the contributory negligence approach, the CPA may be able to avoid liability entirely.

Assume That a Client Has Encountered a $500,000 Fraud and That