When an Auditor Acts So Carelessly in the Application of Professional

question 2

Multiple Choice

When an auditor acts so carelessly in the application of professional standards that it implies a reckless disregard for the standards of due care is referred to as:

• A) Scienter
• B) Fraud
• C) Constructive fraud
• D) Negligence

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Definitions:

Competitive Behavior

Refers to actions of companies that are aimed at gaining an advantage over rivals, often through strategies like pricing, product introduction, and advertising.

Socializing Force

Influences that shape individuals' behaviors, norms, and values through interactions within society and cultural environments.

Morally Right

Refers to actions or behavior that align with ethical standards and principles of fairness and justice.

Values

Core beliefs or standards that guide behavior and decision-making processes for individuals or organizations.