While conducting an audit, Larson Associates CAs failed to detect a material misstatement in its client's financial statements.Larson's unqualified opinion was included with the financial statements in a registration statement and prospectus for a public offering of securities made by the client.Larson knew that its opinion and the financial statements would be used for this purpose.In a suit by a purchaser against Larson for common law negligence, Larson's best defence would be that the

Question

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Conducting the audit in accordance with generally accepted auditing standards would be Larson's best defense, as it demonstrates that they exercised due professional care and followed the appropriate procedures, which is a key factor in defending against negligence claims.

While Conducting an Audit, Larson Associates CAs Failed to Detect