N.Lauren hires D. Humphrey, CPA, to audit her financial statements. The engagement letter includes a statement acknowledging that audited financial statements are required to be filed with a regulatory body by October 1. Humphrey does not complete the audit until October 5. Lauren is late filing the financial statements and is fined $100,000 by the regulatory body. Lauren would most likely sue Humphrey claiming

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The statement in the engagement letter acknowledging the requirement to file the financial statements by October 1 creates an implied contractual obligation for Humphrey to complete the audit in a timely manner. By missing the deadline, Humphrey breached this contract, and Lauren suffered damages in the form of the $100,000 fine. Therefore, Lauren would most likely sue Humphrey for breach of contract.

NLauren Hires D