Question
Teflon Auditors are currently the subject of litigation by a third party who asserts that the auditor was negligent during a recent audit. As a
Teflon Auditors are currently the subject of litigation by a third party who asserts that the auditor was negligent during a recent audit. As a result of the alleged negligence, the third party was injured and is seeking recompense against the auditor. Specifically, the third partv is alleging a failure of due care on the part of the auditor. The argument most likely to prevail in court in successfully litigating this case is for
(a) the third party to allege ordinary negligence on the grounds that the auditor failed to exercise the care a reasonable person would have exercised under similar circumstances. (b) the third party to allege gross negligence, as a lack of due care may be construed by a court to represent a failure to use ever slight care in the circumstances (c) the third party to allege fraud, as a failure of due care may be construed by a court as misrepresentation or nondisclosure of a material fact. (d) None of the choices is correct.
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