Auditing & Assurance Services 6th Edition by Timothy Louwers

تمرين 499

A group of investors sued Anderson, Olds, and Watershed, CPAs (AOW) for alleged damages suffered when the entity in which they held common stock went bankrupt. To avoid liability under the common law, AOW must demonstrate which of the following?
A) The investors actually suffered a loss.
B) The investors relied on the financial statements audited by AOW.
C) The investors' loss was a direct result of their reliance on the audited financial statements.
D) The audit was conducted in accordance with generally accepted auditing standards and with due professional care.