Auditing · Auditor Liability
An auditor is often held liable to a third party (non-client) for negligent misstatements if ________.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1only a fiduciary relationship exists
- 2a duty of care has been established by law (such as in the case of a 'special relationship')✓
- 3there is a mere possibility of loss to the third party
- 4only a contractual relationship exists
Correct answer
a duty of care has been established by law (such as in the case of a 'special relationship')
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