A CPA's Duty of Due Care to a Client Most

question 39

Multiple Choice

A CPA's duty of due care to a client most likely will be breached when a CPA:

• A)Gives a client an oral report instead of a written report.
• B)Gives a client incorrect advice based on an honest error of judgment.
• C)Fails to give tax advice that saves the client money.
• D)Fails to follow generally accepted auditing standards.

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Definitions:

Inputs

Resources such as raw materials, labor, and capital that are used in the production process to create outputs.

Enterprise

A business or company, especially when considered in terms of its size, complexity, or organizational structure.

Downstream Partners

Companies or entities that perform activities in the later stages of the supply chain, closer to the end consumers, such as distributors and retailers.

Upstream Partners

Businesses or individuals that provide raw materials, components, or services to another company for the production of goods.