Auditors should not be liable to any party if they perform services that meet the standards of
A) Ordinary negligence.
B) Regulatory providence.
C) Due care.
D) Good faith.

Question

Quizplus · Accepted Answer

Auditors should perform services with due care, which means they exercise a level of skill and care that would be expected from a reasonably prudent auditor in similar circumstances. If auditors meet this standard, they should not be held liable for any damages that result from their work. However, if they engage in gross negligence or intentional misconduct, they could be held liable for damages. Therefore, A, B, and D are not the correct options.

Auditors Should Not Be Liable to Any Party If They