Which of the following best assists auditors in protecting personal assets against damages from lawsuits?

Question

Quizplus · Accepted Answer

Restructuring to a limited liability partnership (LLP) can help auditors protect their personal assets from damages resulting from lawsuits. In an LLP, each partner's liability is generally limited to their own actions and the actions of those they supervise. This means that if a partner makes a mistake or is found liable for damages, their personal assets would generally not be at risk.

B) Shredding documents prior to an investigation is not a recommended or ethical practice as it may be seen as destroying evidence. 
C) Engaging in torts (civil wrongs) at the federal and state levels is not relevant to protecting personal assets against damages from lawsuits. 
D) The Securities Act of 1933 is a federal law that regulates the offering and sale of securities. While it is important for auditors to understand this law, it does not directly assist in protecting their personal assets in the event of a lawsuit.

Which of the Following Best Assists Auditors in Protecting Personal