Recklessness in the Case of an Audit Is Present If

question 18

Multiple Choice

Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users.This description is the legal term for:

• A)ordinary negligence.
• B)gross negligence.
• C)constructive fraud.
• D)fraud.

---

Definitions:

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.

Rent in Advance

Payment made for a rental property or equipment before the period it covers, usually as a security measure or requirement by the landlord.

Tenant Paid

A term indicating that a tenant is responsible for certain payments, such as utilities or maintenance fees, in addition to rent.

Supplies Used

This term refers to the amount of supplies that have been consumed or utilized during a specific period in business operations.