The Failure of an Accountant to Discover Fraud by the Client's

question 50

True/False

The failure of an accountant to discover fraud by the client's employees or others would not be considered proof of negligence by the accountant.

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Definitions:

Doctrine of Privity

A principle that states a contract cannot confer rights or impose obligations arising under it on any person or agent except the parties to it.

Statutory Assignment

The transfer of rights or benefits from one party to another as permitted or dictated by statute.

Chose in Action

A personal right to property that is recoverable through legal action, such as debts owed or rights in a contract.

Contract Mistakes

Errors made by one or more parties that can affect the validity and enforceability of a contract.