If a CPA Recklessly Departs from the Standards of Due

question 21

Multiple Choice

If a CPA recklessly departs from the standards of due care when conducting an audit,the CPA will be liable to third parties who are unknown to the CPA based on:

• A)Ordinary negligence.
• B)Gross negligence.
• C)Strict liability.
• D)Criminal deceit.

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Definitions:

Perceptual Organization

The process by which the human brain interprets and organizes sensory information to form a coherent, unified view of the environment.

Gestaltists

Psychologists who emphasize holistic processing and perceive psychological phenomena as organized, structured wholes.

Proximity

The physical closeness or distance of objects, which influences how people perceive and group elements in their environment.

Parsing

The process of analyzing a string of symbols, either in natural language, computer languages, or data structures, conforming to the rules of a formal grammar.