Assume that $800,000 in damages are awarded to a plaintiff, and the CPA's percentage of responsibility established at 20%, while others are responsible for the other 80%. Assume the others have no financial resources. As a result the CPA has been required to pay the entire $800,000. The auditor's liability is most likely based upon which approach to assessing liability?
A. Contributory negligence.
B. Absolute liability.
C. Joint and several liability.
D. Proportional liability.
Answer: C
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Answer the following statements true (T) or false (F)
The complex chain of behavioral influence takes place due to events before behavior, the actual behavior, and the results of the behavior take place at both physical and mental levels of behavior.
Halen Company factored $50,000 of its accounts receivable with recourse. The factor retained 8% for sales adjustments and charged $3,000 as a financing fee. For simplicity, assume the estimated and actual amounts of the following items are equal: Sales adjustments $2,500 Uncollectible accounts 500 Assume the transfer is recorded as a sale by Halen Company. What is the loss or financing expense to
be recognized on the transfer? a. $11,000 b. $6,000 c. $3,000 d. $8,000
The capital accounts of Harrison and Marti have balances of $180,000 and $130,000, respectively, on January 1, 2010, the beginning of the current fiscal year. On April 10, Harrison invested an additional $20,000. During the year, Harrison and Marti withdrew $96,000 and $78,000, respectively, and net income for the year was $248,000. The articles of partnership make no reference to the division of
net income. Based on this information, the statement of partners' equity for the 2010 for the partnership would show what amount in as total capital for the partnership on December 31, 2010? A) $228,000 B) $176,000 C) $404,000 D) $752,000
The board of directors cannot declare dividends when the corporation:
a. is insolvent. b. is merging with another corporation. c. is the subject of a takeover bid. d. issues new stock.