A CPA firm is sued after performing a review of a client's financial statements for not uncovering a material misstatement. The CPA firm in this situation can claim lack of duty as a legal defense.

Question

Quizplus · Accepted Answer

A CPA firm can claim lack of duty as a defense if they were only engaged to perform a review, which provides limited assurance and is not designed to uncover all material misstatements like an audit would.

A CPA Firm Is Sued After Performing a Review of a Client's