Which of the Following Would NOT Constitute Scienter

question 43

Multiple Choice

Which of the following would NOT constitute scienter?

• A) Negligent performance of a substandard audit.
• B) Actual knowledge of fraud.
• C) Reckless disregard for truth.
• D) Being paid to conceal fraud.

Understand how operating decisions affect net operating income and break-even points.

Understand the concept of variable costing and its calculation.

Understand the concept of absorption costing and its calculation.

Calculate and interpret the unit product cost under both variable and absorption costing methods.

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Definitions:

Maintenance Rehearsal

Practice of saying some information to be remembered over and over in one’s head in order to maintain it in short-term memory.

Repeating Items

The act of presenting the same items or information multiple times to reinforce memory or learning.

Eyewitness Testimony

Evidence provided by individuals who were present during an event, often used in court, which can be highly influential but sometimes unreliable due to memory inaccuracies.

False Positive

An error in data reporting in which a test result improperly indicates presence of a condition (such as a disease) when it is not actually present.