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Allen and Willett Chartered Accountants audited the financial statements included in the annual report of Hunter Securities Ltd. The audit was improper in several respects. Hunter Securities Ltd is now insolvent and unable to satisfy the claims of its customers. The customers have instituted legal action against Allen and Willett under the Australian consumer Law. Which of the following is Allen and Willet's best defence? The Australian Consumer Law doesn't address this situation. They did not intentionally or knowingly certify false financial statements. Their engagement letter specifically disclaimed any liability to any party,

Allen and Willett Chartered Accountants audited the financial statements included in the annual report of Hunter Securities Ltd. The audit was improper in several respects. Hunter Securities Ltd is now insolvent and unable to satisfy the claims of its customers. The customers have instituted legal action against Allen and Willett under the Australian consumer Law. Which of the following is Allen and Willet's best defence? The Australian Consumer Law doesn't address this situation. They did not intentionally or knowingly certify false financial statements. Their engagement letter specifically disclaimed any liability to any party,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Allen and Willett Chartered Accountants audited the financial statements included in the annual report of Hunter Securities Ltd. The audit was improper in several respects. Hunter Securities Ltd is now insolvent and unable to satisfy the claims of its customers. The customers have instituted legal action against Allen and Willett under the Australian consumer Law. Which of the following is Allen and Willet's best defence? O The Australian Consumer Law doesn't address this situation. They did not intentionally or knowingly certify false financial statements. Their engagement letter specifically disclaimed any liability to any party, resulting from Hunter Securities Ltd's fraudulent conduct. O They were not in privity of contract with the customers.
Transcribed Image Text:Allen and Willett Chartered Accountants audited the financial statements included in the annual report of Hunter Securities Ltd. The audit was improper in several respects. Hunter Securities Ltd is now insolvent and unable to satisfy the claims of its customers. The customers have instituted legal action against Allen and Willett under the Australian consumer Law. Which of the following is Allen and Willet's best defence? O The Australian Consumer Law doesn't address this situation. They did not intentionally or knowingly certify false financial statements. Their engagement letter specifically disclaimed any liability to any party, resulting from Hunter Securities Ltd's fraudulent conduct. O They were not in privity of contract with the customers.
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