Assume that auditors lost a civil lawsuit for damages and the court found total losses of $5 million.If the auditors were determined to be 30 percent at fault and were the only solvent defendant,what is the auditors' likely obligation under proportionate liability?

Question

Quizplus · Accepted Answer

Under proportionate liability, the auditors' obligation would be proportional to their degree of fault, which is 30%. Therefore, their obligation would be 30% of the total losses of $5 million, which is $1.5 million. However, since they are the only solvent defendant, their obligation would be the full amount of $1.5 million. Therefore, the correct answer is  Choice C.

Assume That Auditors Lost a Civil Lawsuit for Damages and the Court