In an audit engagement which of the following would be considered to be one stage removed from the privity of contract?

Question

Quizplus · Accepted Answer

Shareholders are considered to be one stage removed from the privity of contract in an audit engagement because the primary contract is between the company (being audited) and the auditor. Shareholders, while they have an interest in the audit's outcome, are not direct parties to the audit contract.

In an Audit Engagement Which of the Following Would Be