Which of the Following Elements,if Present,would Support a Finding of Constructive

question 38

Multiple Choice

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

• A)Gross negligence in conducting the engagement.
• B)Ordinary negligence in conducting the engagement.
• C)Failure to perform the engagement in accordance with the terms in the engagement letter.
• D)Actions that demonstrated scienter.

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Definitions:

Investment

The allocation of resources, usually financial, into assets or projects expected to yield future returns.

Economists

Experts who study the production, distribution, and consumption of goods and services.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.

Interest Rates

The cost of borrowing money or the return on invested capital, expressed as a percentage of the principal amount.