A CPA Will Most Likely Be Negligent When the CPA

question 57

Multiple Choice

A CPA will most likely be negligent when the CPA fails to

• A) correct errors discovered in the CPA's previously issued audit reports.
• B) detect all of a client's fraudulent activities.
• C) include a negligence disclaimer in the CPA's engagement letter.
• D) warn a client's customers of embezzlement by the client's employees.

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Definitions:

Conscientious

Referring to a trait of being thorough, careful, or vigilant; implies a desire to do a task well.

Critical Thinking

involves the objective analysis and evaluation of an issue in order to form a judgment.

Defensible

Defensible refers to something that can be supported or maintained with evidence, making it justifiable in the face of scrutiny or challenge.

Scientific Reasoning

Refers to the methodological approach of using empirical data, observations, and experiments to form hypotheses and conclusions.