An Accountant's Failure to Follow Generally Accepted Auditing Standards in Conducting

question 22

Multiple Choice

An accountant's failure to follow generally accepted auditing standards in conducting an audit generally amounts to:

• A) fraud
• B) negligence
• C) promissory estoppel
• D) reliance
• E) falsification

---

Definitions:

Franchise Contract

A legal agreement granting an individual or group the rights to market a company’s products or services in a specific territory.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after inter-company transactions have been eliminated.

Noncontrolling Interests

A portion of equity in a subsidiary not held by the parent company, representing the minority ownership's share of the subsidiary's net assets and income.

Net Income

The total profit of a company after subtracting all expenses from revenues, including taxes and operating expenses.