John is a CPA in charge of auditing his client,McMillen & Co.John's duty of care to McMillen will most likely be breached if John
A)gives his client an oral report instead of a written report.
B)gives his client incorrect advice based on an honest error in judgment.
C)fails to give tax advice that would save his client money.
D)fails to follow generally accepted auditing standards (GAAS).

Question

John is a CPA in charge of auditing his client,McMillen & Co.John's duty of care to McMillen will most likely be breached if John
A)gives his client an oral report instead of a written report.
B)gives his client incorrect advice based on an honest error in judgment.
C)fails to give tax advice that would save his client money.
D)fails to follow generally accepted auditing standards (GAAS).

Quizplus · Accepted Answer

John's duty of care to McMillen requires adherence to generally accepted auditing standards (GAAS). Failure to follow GAAS could lead to a breach of duty of care. A, B, and C are not necessarily a breach of duty of care, as long as John is fulfilling his responsibilities within GAAS.

John Is a CPA in Charge of Auditing His Client,McMillen