Assume that $800,000 in damages are awarded to a plaintiff, and the CPA's percentage of responsibility established at 20%, while others are responsible foor the other 80%. Assume the others have no financial resources. The CPA has been required to pay $160,000. The auditor's liability is most likely based upon which approach t assesssing liability?
Assume that $800,000 in damages are awarded to a plaintiff, and the CPA's percentage of responsibility established at 20%, while others are responsible foor the other 80%. Assume the others have no financial resources. The CPA has been required to pay $160,000. The auditor's liability is most likely based upon which approach t assesssing liability?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Assume that $800,000 in damages are awarded to a plaintiff, and the CPA's percentage of responsibility established at 20%, while others are responsible foor the other 80%. Assume the others have no financial resources. The CPA has been required to pay $160,000. The auditor's liability is most likely based upon which approach t assesssing liability?
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Step 1
Under Joint and several liability, Regardless the degree of fault by the parties, all the parties more than one can be liable independently for the full amount of plaintiff damages.
where as in Proportional liability, Defendant to be held liable on proportional basis for the damages made by him for their fault or accident
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