Assume that $500,000 in damages are awarded to a plaintiff, and the CPA's percentage of responsibility established at 10%, while others are responsible for the other 90%. Assume the others have no financial resources. As a result the CPA has been required to pay the entire $500,000. The auditor's liability is most likely based upon which approach to assessing liability?

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Quizplus · Accepted Answer

The most likely approach to assessing liability in this scenario is joint and several liability, which means that each defendant is responsible for the entire amount of damages awarded by the court, regardless of their percentage of responsibility. Since the others responsible for the damages have no financial resources, the CPA has been required to pay the entire amount. Therefore, the CPA's liability is jointly and severally liable for the damages, meaning that the CPA is responsible for the entire $500,000 awarded to the plaintiff. This is the fairest approach for the plaintiff to recover their damages, and it ensures that someone is held accountable for the wrongdoing.

Assume That $500,000 in Damages Are Awarded to a Plaintiff