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Accounting Chapter 5, Problem 21

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Title: Accounting Chapter 5, Problem 21
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Subject: Business
Date: October 4, 2004
Length: 2 / 389
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Contributory negligence exists when the client's own actions either resulted in the loss that is the basis for damages or interfered with the conduct of the audit in such a way that prevented the auditor from discovering the cause of the loss. In the Sharpe example, this defense would most definitely apply...
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In the Sharpe example, this defense would most definitely apply. Sharpe notified the client- in this case, the accountant in-charge- of the exceptions but management did nothing about it.
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