Which of the Following Statements Is True of Negligence by an Accountant

question 46

Multiple Choice

Which of the following statements is true of negligence by an accountant?

• A) The failure of an accountant to discover fraud by the client's employees or others is in itself proof of negligence by the accountant.
• B) The investigative techniques used by accountants will always uncover the fraud of a skillful and careful crook.
• C) The traditional defenses of contributory negligence and comparative negligence can apply in a negligence action against an accountant.
• D) It is not necessary to notify an appropriate person in management if an accountant has a basis for suspicion of fraud.

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Definitions:

Groundwater Depletion

The excessive withdrawal of groundwater resources faster than they can naturally be replenished, leading to a decline in groundwater levels.

Overgrazing

occurs when plants are exposed to intensive grazing for extended periods, impairing plant growth and soil health.

Nomadic Lifestyle

A way of life characterized by moving from one place to another rather than settling permanently in one location, often for reasons such as following seasonal food sources or grazing lands for livestock.

Desert Ecosystem

A biome characterized by very low precipitation, extreme temperatures, and sparse vegetation, supporting a unique set of flora and fauna adapted to arid conditions.