Which of the following is an illustration of auditor's liability to a client?
A) Bank sues auditor for not discovering that borrower's financial statements are misstated.
B) Federal government prosecutes auditor for knowingly issuing an incorrect audit report.
C) Client sues auditor for not discovering a theft of assets by an employee.
D) Combined group of stockholders sue auditor for not discovering materially misstated financial statements.
Correct Answer:
Verified
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