When an auditor is found guilty of a fraudulent misrepresentation,there is liability owed to ________.

Question

Quizplus · Accepted Answer

When an auditor is found guilty of a fraudulent misrepresentation, they are liable to any party that suffered a loss as a result of their actions, regardless of whether they had privity or a contractual relationship with the auditor. This includes not only shareholders, but also other stakeholders such as creditors, employees, and customers. Therefore, option B is the most accurate answer.

When an Auditor Is Found Guilty of a Fraudulent Misrepresentation,there