Asked by Mandrell Little on Jun 04, 2024
Verified
By issuing a qualified opinion,an auditor escapes liability for defects in financial statements audited by the auditor.
Qualified Opinion
An auditor's opinion that a company's financial statements are accurate but with certain reservations or exceptions noted by the auditor.
Auditor
A professional who reviews and verifies the accuracy of financial records and ensures compliance with applicable laws and regulations.
Liability
The legal responsibility for one's actions or omissions, often leading to the requirement to compensate for damages or losses caused.
- Gain insight into the conditions that render professionals liable for their behavior and the justifications they can use in their defense.
Verified Answer
CJ
Chahine JebabliJun 09, 2024
Final Answer :
False
Explanation :
Even after issuing a qualified opinion,an auditor may not escape complete liability for defects in financial statements audited by the auditor because letters that purport to disclaim liability totally for false and misleading financial statements are too general to excuse an accountant from exercising ordinary skill and care.
Learning Objectives
- Gain insight into the conditions that render professionals liable for their behavior and the justifications they can use in their defense.