A number of cases have considered the auditor’s liability in relation to persons other than the immediate client. Even so, the AWA case established that: Select one: a. Duty of care and skill means following the accounting standards b. auditors have a contractual duty to oversee and review the work of inexperienced audit staff c. Auditors are only liable for the proportion of damages attributable to their actions d. Auditors have a duty of care only to the shareholders.

A number of cases have considered the auditor’s liability in relation to persons other than the immediate client. Even so, the AWA case established that: Select one: a. Duty of care and skill means following the accounting standards b. auditors have a contractual duty to oversee and review the work of inexperienced audit staff c. Auditors are only liable for the proportion of damages attributable to their actions d. Auditors have a duty of care only to the shareholders.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports For Financial Statement Audits

Section: Chapter Questions

Problem 11CYBK

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Question

A number of cases have considered the auditor’s liability in relation to persons other than the immediate client. Even so, the AWA case established that:

Select one:

a. Duty of care and skill means following the accounting standards

b.
auditors have a contractual duty to oversee and review the work of inexperienced audit staff

c.
Auditors are only liable for the proportion of damages attributable to their actions

d.
Auditors have a duty of care only to the shareholders.

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