Question

A) breach of contract. (B) ordinary negligence. C) privity D) constructive fraud. 21. Lauren hires Humphrey, a CPA, to audit her financial statements. The engagement includes a statement acknowledging that audited financial statements are rear filed with a regulatory body by October 1. Humphrey does eth October 5. Lauren is late filing the financial statements an 4/5 0,0 regulatory body. Lauren would most likely sue Humphrey A) breach of contract. B) ordinary negligence. gross negligence. D) constructive fraud.

correct answer with explanations

Answer 1

A.

Breach of Contract.

Explanation:

If one party fails to fulfill their side of an obligation as in this case Humphrey has failed to complete the audit, or they break the terms and conditions set out in an agreement, they have breached the contract. There are a number of ways that parties can breach contracts, but typically involve the failure to pay or the non-delivery of goods or services.