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Auditing & Assurance Services 6th Edition by Timothy Louwers
Edition 6ISBN: 978-0077862343Auditing & Assurance Services 6th Edition by Timothy Louwers
Edition 6ISBN: 978-0077862343 Exercise 127
If a CPA firm is being sued for common law fraud by a third party based upon materially false financial statements, which of the following is the best defense the auditors could assert?
A) Lack of privity.
B) Lack of reliance.
C) A disclaimer contained in the engagement letter.
D) Contributory negligence on the part of the client.
A) Lack of privity.
B) Lack of reliance.
C) A disclaimer contained in the engagement letter.
D) Contributory negligence on the part of the client.
Explanation
Verified
Verified
Here, the CPA firm claims that the audit...
Auditing & Assurance Services 6th Edition by Timothy Louwers
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