Negligence is the failure to perform a duty with the requisite standard of care. What are the four elements of negligence and what would be an auditor's defence against them?
What will be an ideal response?
There existed a legal duty of care to the plaintiff which was breached by the auditor and there is proof that damage resulted from that breach in duty. There must also be a reasonably proximate connection between the breach of duty and the resulting damage. The auditor's best defence is that one of the four elements is missing. For example, that the duty of care was not breached by the auditor (he followed GAAP and GAAS) and that there was contributory negligence by the plaintiff.
You might also like to view...
Which of the following is not indicative of a complex capital structure?
A. Outstanding convertible preferred stock. B. Outstanding stock options. C. Outstanding convertible bonds. D. Outstanding cumulative preferred stock.
Errors that can be attributed to sources other than sampling are called ________
A) nonsampling errors B) problem definition errors C) hypothesis errors D) random sampling errors E) precision errors
Self-gratification for the retailer is classified as a societal objective.
Answer the following statement true (T) or false (F)
Which of the following is the best example of nationalization?
A) In 1940, the city of New York purchased the bankrupt Brooklyn-Manhattan Transit rail lines. B) In 1979, Great Britain made a partial sale of British Petroleum to private investors. C) A private company contracts to manage all of a city's waste management. D) A country's economic policy calls for a balance of trade. E) A developing country receives a loan from the International Monetary Fund.