A CPA Would Violate the Due Care Principle If He/she

question 71

Multiple Choice

A CPA would violate the Due Care Principle if he/she:

• A) Undertook a professional engagement without having the requisite background, knowledge and experience
• B) Discloses confidential information about a client
• C) Violates the Public Interest Principle
• D) Performs tax services for an audit client without audit committee approval

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Definitions:

Equitable Estoppel

A legal principle preventing someone from arguing something contrary to a claim if a previous action or agreement implied that claim.

Written Promise

A documented commitment by one party to perform or refrain from performing certain actions for another party.

Reasonable Amount

An amount that is considered fair, appropriate, and not excessive under the circumstances, often used in legal and financial contexts.

Gratuitous Promise

A pledge or commitment made without the expectation of receiving something in return, not typically enforceable as a contract.