Which of the Following Would NOT Constitute Scienter

question 43

Multiple Choice

Which of the following would NOT constitute scienter?

• A) Negligent performance of a substandard audit.
• B) Actual knowledge of fraud.
• C) Reckless disregard for truth.
• D) Being paid to conceal fraud.

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Definitions:

Premiums Paid

Amounts paid for insurance coverage or policies over a specified period.

Unexpired Insurance

The portion of an insurance premium that has not yet been used up or has not yet expired, representing a future economic benefit.

Insurance Policy

A contract between an insurer and a policyholder in which the insurer agrees to compensate the policyholder for specific losses in exchange for a premium.

Adjusting Entry

A journal entry made at the end of an accounting period to record unpaid expenses or revenues that have accrued, ensuring the accounts reflect the true financial position.