Scienter Is the Element of Fraud That Requires That the Person

question 49

True/False

Scienter is the element of fraud that requires that the person who makes the misrepresentation knows that it is false or has reckless indifference as to its truthfulness.

---

Definitions:

External Users

Individuals or entities outside of a company (such as investors, creditors, and regulators) who use its financial statements and reports for decision-making purposes.

Internal Users

Individuals within an organization, such as managers and employees, who use the company's financial information for decision-making.

Financial Accounting Standards Board (FASB)

An independent organization responsible for establishing and improving standards of financial accounting and reporting for the private sector in the United States.

Accounting Principles

Guidelines and rules that govern the accounting practices and procedures, ensuring accuracy and consistency in financial reporting.