Under common law, when performing an audit, a CPA:

Question $1$Answer

a$.$

Must exercise the level of care, skill, and judgment expected of a reasonably prudent CPA under the circumstances.

b$.$

Must strictly adhere to generally accepted accounting principles.

c$.$

Is strictly liable for failures to discover client fraud.

d$.$

Is not liable unless the CPA commits gross negligence or intentionally disregards generally accepted auditing standards.