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

Question

Quizplus · Accepted Answer

The standard of due care is the level of care that a reasonably prudent auditor would maintain while performing their services. If auditors meet this standard, they should not be held liable for any damages if a party suffers losses due to an error or omission in the audit report. However, if the auditor's actions fall below the standard of due care or they act with intentional misconduct, they can be held liable for damages. Therefore, option C) is the best choice as it reflects the standard that auditors should aim to meet.

Auditors Should Not Be Liable to Any Party If They