Question

A principle that may reduce or entirely eliminate auditor liability to a client is:

a.Auditor gross negligence.
b.Client constructive negligence.
c.Client contributory negligence.
d.Auditor ordinary negligence.

Answer 1

The principle that may reduce or eliminate auditor liability to a client is client contributory negligence. The correct answer is C.

Step-by-step explanation:

Client contributory negligence.

Contributory negligence is a legal defense that may reduce or eliminate the liability of an auditor to a client. It occurs when the client's actions or negligence contribute to the harm or damages they have suffered.

For example, if a client fails to provide necessary information or does not follow established accounting procedures, their contributory negligence may limit the auditor's liability in case of errors or financial losses.