If an Accounting Firm Is Sued for Negligently Preparing a Faulty

question 12

Multiple Choice

If an accounting firm is sued for negligently preparing a faulty financial report for a company, it is likely that the accounting firm is:

• A) not liable; a reasonable number of mistakes are expected to occur
• B) liable if the mistake is one that an ordinary person (any person off the street) would have not made
• 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

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Definitions:

Dementia

Dementia is a broad category of brain diseases that cause a long-term and usually gradual decrease in the ability to think and remember, significantly affecting daily functioning.

Elderly

A term referring to individuals, typically aged 65 and over, who are in the later stage of their life.

Symptoms

Physical or psychological signs that indicate the presence of a condition, disease, or underlying issue.

Arthritis

A medical condition characterized by inflammation of the joints, leading to pain and stiffness.