Which of the Following Elements, If Present, Would Support a Finding

question 37

Multiple Choice

Which of the following elements, if present, would support a finding of constructive fraud on the part of a CPA?

• A)Gross negligence in applying generally accepted auditing standards.
• B)Ordinary negligence in applying generally accepted accounting principles.
• C)Identified third party users.
• D)Scienter.

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Definitions:

Consultant

A professional who provides expert advice in a particular area or specialized field to improve client outcomes.

Role

A set of expectations or functions associated with a particular position or status within a group or society.

Spokesperson

A spokesperson is an individual appointed or designated to speak on behalf of an organization, group, or another person, particularly to the media or public.

Mediator

A neutral third-party who helps resolve disputes by facilitating communication between conflicting parties, aiming for a mutually acceptable agreement.