Which of the following is not a basis for a third-party lawsuit against an auditor?
A)Common law.
B)Breach of contract.
C)Gross negligence.
D)Fraud.

Question

Quizplus · Accepted Answer

Breach of contract is not a basis for a third-party lawsuit against an auditor because breach of contract typically occurs between the auditor and their direct client (the entity being audited), not with a third party. Third-party lawsuits are generally based on common law principles such as negligence or fraud.

Which of the Following Is Not a Basis for a Third-Party