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

question 44

Multiple Choice

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

• A)gives a client a written audit 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:

Possession

The state of having, owning, or controlling something, typically physical.

Bailment

The act of temporarily placing control over or possession of personal property in another's hands, for a specific purpose.

Reward

A benefit or recognition given in response to an action, achievement, or service, often used as motivation or compensation.

Garage

A building or indoor space primarily used for parking vehicles, but may also serve as a workshop or storage area for various items.