Which of the Following Claims Concerning the Quality of Auditors

question 40

Multiple Choice

Which of the following claims concerning the quality of auditors' work would least likely result in civil liability for damages?

• A)Gross negligence amounting to constructive fraud.
• B)Failure to investigate possible fraud when other entities in the industry have experienced frauds.
• C)Reckless disregard of evidence that the financial statements do not conform to generally accepted accounting principles.
• D)Issuing an unqualified auditors' opinion when evidence suggests that the financial statements were not prepared according to generally accepted accounting principles.

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Definitions:

Iron Oxide

A chemical compound made up of iron and oxygen, known for its reddish color and common presence in rust and many types of soil and rocks.

Reddish Color

A color hue that resembles the tint of blood or the primary color red mixed with slight amounts of white or yellow.

Silica

Silicon dioxide (SiO2), appearing either as a relatively pure form in a mineral (e.g., quartz) or as a component in more chemically complex minerals and rocks.

Cube-Shaped Crystals

Solids with an atomic structure that forms into a cube shape, commonly observed in minerals such as pyrite and halite.