A CPA who fraudulently performs an audit of a corporation's financial statements will:
A) probably be liable to any person who suffered a loss as a result of the fraud.
B) be liable only to the corporation and to third parties who are members of a class of intended users of the financial statements.
C) probably be liable to the corporation even though its management was aware of the fraud and did not rely on the financial statements.
D) be liable only to third parties in privity of contract with the CPA.
Correct Answer:
Verified
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