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Locke,CPA Was Engaged by Hall,Inc

Question 90

Multiple Choice

Locke,CPA was engaged by Hall,Inc.to audit Willow Company.Hall purchased Willow after receiving Willow's audited financial statements,which included Locke's unqualified auditors' opinion.Locke was negligent in the performance of the Willow audit engagement; this negligence was caused by failure to perform the engagement in accordance with the terms of the engagement letter.As a result of Locke's negligence,Hall suffered damages of $75,000.Hall appears to have grounds to sue Locke for Locke,CPA was engaged by Hall,Inc.to audit Willow Company.Hall purchased Willow after receiving Willow's audited financial statements,which included Locke's unqualified auditors' opinion.Locke was negligent in the performance of the Willow audit engagement; this negligence was caused by failure to perform the engagement in accordance with the terms of the engagement letter.As a result of Locke's negligence,Hall suffered damages of $75,000.Hall appears to have grounds to sue Locke for   A)  Option A B)  Option B C)  Option C D)  Option D


A) Option A
B) Option B
C) Option C
D) Option D

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