If an audit firm is being sued by a third party for common-law fraud based upon a materially false financial report, which of the following is the best defence which the auditors could assert?

Question

Quizplus · Accepted Answer

Lack of causation is the best defense because it argues that the auditors' actions were not the direct cause of the third party's loss, which is crucial in defending against claims of fraud.

If an Audit Firm Is Being Sued by a Third