Which of the following is the best defense that a CPA can assert against common law litigation by a stockholder claiming fraud based on an unqualified opinion on materially misstated financial statements?

Question

Quizplus · Accepted Answer

The best defense that a CPA can assert against common law litigation by a stockholder claiming fraud based on an unqualified opinion on materially misstated financial statements is due professional care. The CPA has a duty to exercise professional care in performing the audit and preparing the audit report. If the CPA exercised due professional care, it will be a strong defense against claims of fraud.

Which of the Following Is the Best Defense That a CPA