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

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Definitions:

Radiating Lines

Lines that extend outwards from a central point in a pattern that suggests radiation or the rays of the sun.

Past Lives

The belief or concept that an individual's spirit or soul has lived in other bodies before being born into the current life.

Childhood Memories

Childhood memories refer to recollections of events from one's early years, which can significantly influence one's personality and perceptions.

Hypnotized

A trance-like state in which a person has heightened focus and concentration, often used for therapeutic purposes.