In the performance of an audit, a CPA:

Question

Quizplus · Accepted Answer

Regardless of the type of client (publicly held or privately held), a CPA must exercise due professional care in the performance of their audit responsibilities to meet the applicable auditing standards. However, for publicly held clients, the PCAOB auditing standards must be followed in addition to GAAS. The CPA may be held liable for not detecting client fraud, but this liability is subject to certain limitations and depends on the circumstances surrounding the fraud.

In the Performance of an Audit, a CPA