If an Accounting Firm Is Sued for Negligently Preparing a Faulty

question 191

Multiple Choice

If an accounting firm is sued for negligently preparing a faulty financial report for a company that caused significant losses by those who relied on the accounting, the accounting firm is likely to be:

• A) not liable; there is no promise that results will be perfect
• B) held subject to the standard of care imposed on professional parties
• C) held subject to a special statutory standard of care
• D) held to have violated the principles of strict liability
• E) none of the other choices

---

Definitions:

Developmentally Appropriate Tools

Resources or methods designed to match the developmental stage of an individual, ensuring they are suitable for their age and capabilities.

Child Sexual Abuse

Involves an adult or older adolescent engaging in sexual activities with a child.

Disclose

To make known or reveal information that was previously private or secret.

Underestimates

Occurs when the value, amount, importance, or size of something is judged to be lower than it actually is.