If a Certified Public Accountant Knowingly and Intentionally Performs a Fraudulent

question 44

Multiple Choice

If a certified public accountant knowingly and intentionally performs a fraudulent audit of a company,the accountant will most probably be liable to:

• A) any individual or company that suffered a loss as a result of the fraud.
• B) only the corporation and those third parties who the accountant knew would rely on the audit.
• C) only the corporation and those third parties belonging to the class of intended users of the audit.
• D) only those parties in privity of contract with the accountant.
• E) the corporation, even if the corporation was aware of the fraud and did not rely on the audit results.

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Definitions:

Schizophrenia

A chronic psychological disorder characterized by a disconnection among cognition, affect, and conduct, resulting in distorted perceptions and unsuitable behaviors.

Pessimistic Explanatory Style

A mental approach where individuals habitually attribute negative events to personal, permanent, and pervasive causes.

Setbacks

Events or conditions that hinder progress or cause a decline in performance, often temporarily.

Personal Flaws

Individual weaknesses or shortcomings that are often character-based and can impact one's decisions or actions negatively.