To succeed in an action against the auditor,the client must be able to show that
A)the auditor was grossly negligent.
B)the auditor was fraudulent.
C)there is a close causal connection between the auditor's breach of the standard of due care and the damages suffered by the client.
D)there was a written contract.

Question

Quizplus · Accepted Answer

In order to succeed in an action against the auditor, the client must show a close causal connection between the auditor's breach of the standard of due care and the damages suffered by the client. Gross negligence or fraud may be sufficient to prove a breach of the standard of due care, but they alone are not sufficient to succeed in the action. A written contract may specify the scope of the auditor's duties and responsibilities, but it is not necessary to have a contract to establish liability for professional negligence.

To Succeed in an Action Against the Auditor,the Client Must