In third- party suits, which of the auditor's defences contends lack of privity of contract?

Question

Quizplus · Accepted Answer

Lack of privity of contract is a defence that contends that the auditor owes no duty of care to the plaintiff because there is no contractual relationship between them. Therefore, the correct answer is A) Lack of duty. Option B) Absence of causal connections is a defence that contends that the auditor is not responsible for the damages claimed by the plaintiff. Option C) Non-negligent performance is a defence that contends that the auditor's work was performed in a proper and professional manner. Option D) Contributory negligence is a defence that contends that the plaintiff's own actions contributed to the damages claimed, reducing the auditor's liability.

In Third- Party Suits, Which of the Auditor's Defences Contends