The primary defense for auditors against a claim of ordinary negligence is to offer evidence that the
A) Audit was conducted in accordance with GAAS.
B) Plaintiff was not in privity or not foreseen.
C) Financial statements did not contain a material misstatement.
D) Plaintiff contributed to the negligence.

Question

Quizplus · Accepted Answer

The primary defense for auditors against a claim of ordinary negligence is to offer evidence that the audit was conducted in accordance with GAAS, which sets the standards for the audit process. If the audit was conducted in accordance with GAAS, the auditor may not be held liable even if a material misstatement is later identified. This defense is known as the GAAS defense.

The Primary Defense for Auditors Against a Claim of Ordinary