One of the Elements Necessary to Hold a CPA Liable

question 53

Multiple Choice

One of the elements necessary to hold a CPA liable to a client for conducting an audit negligently is that the CPA:

• A)acted with scienter or guilty knowledge.
• B)was a fiduciary of the client.
• C)failed to exercise reasonable care.
• D)executed a fraudulent engagement letter.

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Definitions:

Systematic Desensitization

A therapeutic technique used in behavioral therapy to gradually reduce phobia, anxiety, or fear by exposing the individual to the feared object or context in a controlled manner.

Causal Attribution

Explanation for why an event occurred.

Behavioral Theories

Theories that explain human behavior by focusing on observable behaviors and the external stimuli that may cause them, rather than on internal psychological processes.

Schizophrenia

A psychiatric disorder that involves abnormal alterations in cognition, perception, feelings, speech, self-awareness, and conduct.