A CPA's Duty of Due Care to a Client Most

question 39

Multiple Choice

A CPA's duty of due care to a client most likely will be breached when a CPA:

• A)Gives a client an oral report instead of a written report.
• B)Gives a client incorrect advice based on an honest error of judgment.
• C)Fails to give tax advice that saves the client money.
• D)Fails to follow generally accepted auditing standards.

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Definitions:

Estimated Life

The projected period over which an asset is expected to be useful in the operations of a business for depreciation purposes.

Capital Expenditure

Long-term investment spent on acquiring or maintaining fixed assets, such as equipment, buildings, or land.

Company Truck

A vehicle owned by a business, used for the company's operations or logistical needs.

Company Car

A vehicle provided by a company for the business and sometimes personal use of its employees.