Odette, an Accountant, Contracts to Perform Services for Percy

question 14

Multiple Choice

Odette, an accountant, contracts to perform services for Percy. Odette acts in good faith and conforms to generally accepted accounting principles, but makes an incorrect judgment. Odette is most likely​

• A) ​liable if Odette failed to discover a defalcation.
• B) ​liable if Odette failed to discover a fraud.
• C) ​liable if Odette failed to discover an impropriety.
• D) ​not liable.

---

Definitions:

Tendered Bid

A formal offer submitted in response to an invitation to bid for a project, often including price and terms of service.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," implying that the buyer assumes the risk about the quality and condition of the product being sold.

Standard Form Contract

A contract with fixed terms prepared by a business.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.