The auditor can be held liable for malpractice in situations where the investors suffered losses while relying on the financial statements.

Name: The auditor can be held liable for malpractice in situations where the investors suffered losses while relying on the financial statements.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true. Auditors have a duty of care to their clients and can be held liable for malpractice if they fail to meet this duty, resulting in financial losses for investors who rely on the financial statements.

The Auditor Can Be Held Liable for Malpractice in Situations