The court found that Casey, an auditor, had performed a negligent audit of Royal Treatment Ltd, but the plaintiff did not receive damages because the court found insufficient proof of causation. Causation means that:
A) the auditor caused the misstatement of the financial report.
B) the auditor's failure to perform a proper audit caused the damages.
C) the auditor was negligent, but the plaintiff suffered no real damages.
D) the plaintiff was an unforeseen third-party user of the financial report.
Correct Answer:
Verified
Q3: Common law requires that the auditor:
A) guarantee
Q5: If an audit firm is being sued
Q8: Smart issued an unmodified auditor's opinion on
Q10: Which of the following statements best describes
Q10: The auditor's responsibility for the detection of
Q11: An auditor discovers a likely fraud during
Q28: Due professional care does not require:
A)critical review
Q33: The Pacific Acceptance case established that:
A)reasonable care
Q34: When performing an audit, an auditor would
Q43: The CLERP 9 reforms now provide for
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