Which of the Following Elements,if Present,would Support a Finding of Constructive

question 32

Multiple Choice

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

• 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:

Long-term Fixed Pricing

A pricing strategy where the seller sets a specific price for a product or service that does not change over a long period, offering stability to both the seller and the buyer.

McClelland's Three Needs

A theory of motivation that highlights three primary needs influencing human behavior: the need for achievement, the need for affiliation, and the need for power.

Maslow's Hierarchy

a psychological theory proposed by Abraham Maslow that categorizes human needs into five levels, from basic physiological needs to self-actualization.

Erikson's Life Stages

A psychological theory proposed by Erik Erikson that describes eight stages of human development, each characterized by a specific conflict that must be resolved for healthy psychological development.