Elliot Corp

question 35

Multiple Choice

Elliot Corp.is interested in purchasing Roger Corp.Prior to the purchase Elliot hired Adam & Co.to audit the financial statements of Roger.During the audit,Adam & Co.failed to discover a fraud that resulted in material misstatements in Roger's financial statements.After the acquisition,the fraud was discovered and Elliot Corp.suffered substantial losses.If Elliot sues Adam & Co.,Elliot must prove that Adam & Co:

• A)Acted recklessly or with lack of reasonable grounds for belief.
• B)Knew of the instances of fraud.
• C)Failed to exercise the appropriate level of professional care.
• D)Demonstrated gross negligence.

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Definitions:

Task Leadership

The aspect of leadership that focuses on accomplishing goals and managing the tasks and objectives of a team or organization.

Human Factors Psychology

A field of psychology that examines how people interact with products, systems, and environments to improve safety, performance, and satisfaction.

Personnel Psychologists

Psychologists who specialize in the study and practice of improving worker performance and well-being within organizations.

Analytical

Relating to the systematic examination of the structure of something, typically by separating it into its components to understand its nature or to find patterns.