Management failed to put in a system of adequate internal controls. The public accounting firm uncovered the weakness, but did not report it to the Board members of the company. What
Kind of liability, if any, would the auditors be exposed to?
A) breach of contract
B) contributory negligence
C) both a and b
D) no liability
Correct Answer:
Verified
Q44: Which of the following statements is not
Q45: Rob Wood has reviewed the engagement letter
Q46: The relationship between the external and internal
Q47: The Pacific Acceptance case set the standards
Q48: The audit committee
A) consists of non-executive directors
Q50: It is the responsibility of the board
Q51: The main recipients of the financial statements
Q52: Auditors can avoid litigation by
A) ensuring compliance
Q53: Examples of board committees include the
A) risk
Q54: If a prospective new audit client does
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