Is the auditor's liability under common law affected if the third party was unknown rather...
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Is the auditor's liability under common law affected if the third party was unknown rather than known? Explain. Question content area bottom Part A The auditor's liability to a third party is not affected and will remain the same whether the party is known or unknown. An auditor is held to the same standards with work they complete regardless of if the auditor knows of the third party or not. B The auditor's liability to a third party is affected by whether the party is known or unknown. An unknown third party, under common law, usually has the same rights as the party that is privy to the contract. A known third party usually has fewer rights. C The auditor's liability to a third party is not affected by whether the party is known or unknown. The auditor's liability depends only on the magnitude of the losses suffered by the user whether they were known to the auditor or not. D The auditor's liability to a third party is affected by whether the party is known or unknown. A known third party, under common law, usually has the same rights as the party that is privy to the contract. An unknown third party usually has fewer rights.
Is the auditor's liability under common law affected if the third party was unknown rather than known? Explain.
Question content area bottom
Part
A
The auditor's liability to a third party is not affected and will remain the same whether the party is known or unknown. An auditor is held to the same standards with work they complete regardless of if the auditor knows of the third party or not.
B
The auditor's liability to a third party is affected by whether the party is known or unknown. An unknown third party, under common law, usually has the same rights as the party that is privy to the contract. A known third party usually has fewer rights.
C
The auditor's liability to a third party is not affected by whether the party is known or unknown. The auditor's liability depends only on the magnitude of the losses suffered by the user whether they were known to the auditor or not.
D
The auditor's liability to a third party is affected by whether the party is known or unknown. A known third party, under common law, usually has the same rights as the party that is privy to the contract. An unknown third party usually has fewer rights.
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