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Management Failed to Put in a System of Adequate Internal

Question 49

Multiple Choice

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:

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