Which of the Following Elements, If Present, Would Support a Finding

question 37

Multiple Choice

Which of the following elements, if present, would support a finding of constructive fraud on the part of a CPA?

• A)Gross negligence in applying generally accepted auditing standards.
• B)Ordinary negligence in applying generally accepted accounting principles.
• C)Identified third party users.
• D)Scienter.

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Definitions:

Transmission

The process of conveying information, signals, or messages from one person or place to another, through verbal, non-verbal, or technological means.

Mum Effect

The tendency to avoid communicating unfavourable news to others.

Decoding Problems

The process of interpreting and breaking down complex problems into manageable parts for better understanding and solution.

Non-verbal Communication

The process of conveying a message without the use of words, through gestures, facial expressions, and body language.