Which of the following statements regarding the auditor's responsibility to third parties is correct?
A) The auditor has no legal responsibility to third parties.
B) Third parties can sue the auditor under contract for any losses suffered.
C) The auditor owed the third party a duty of care, was negligent in the conduct of the audit and suffered a loss.
D) Third parties must establish that the auditor owed them a duty of care and the auditor was negligent.
Correct Answer:
Verified
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