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