Which of the following is not a potential cause for action against the auditor for breach of contract?
A)Withdrawing from an audit engagement due to unresolved disagreements with management.
B)Failing to discover a material error in the financial statements.
C)Violating client confidentiality.
D)Failing to provide the audit report on time.

Question

Quizplus · Accepted Answer

Withdrawing from an audit engagement due to unresolved disagreements with management is not a breach of contract by the auditor, as they have the right to withdraw from the engagement if there are disagreements with management that cannot be resolved. The other choices represent potential breaches of contract by the auditor.

Which of the Following Is Not a Potential Cause for Action