In establishing that the third party relied on the financial statements, one factor that works against plaintiffs' establishing such reliance is:
A) Fraud did not exist
B) Damages or loss suffered by the plaintiff would not have occurred regardless of whether the audited financial statements were misstated
C) Damages or loss suffered by the plaintiff would have occurred regardless of whether the audited financial statements were misstated
D) Negligence did not exist

Question

Quizplus · Accepted Answer

C) Damages or loss suffered by the plaintiff would have occurred regardless of whether the audited financial statements were misstated. This suggests that the reliance on financial statements was not a factor in the loss, undermining the claim of reliance.

In Establishing That the Third Party Relied on the Financial