It Has Been Held That When, as a Result of His

question 16

Multiple Choice

It has been held that when, as a result of his or her negligence, the accountant fails to discover or conceals evidence that a client's employee has been embezzling funds, an accountant is liable only to his or her:

• A) agent.
• B) company.
• C) client.
• D) partner.

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Definitions:

Stock Exchange

A marketplace where securities, such as stocks and bonds, are bought and sold.

Consideration

In contract law, it refers to something of value exchanged between parties as part of an agreement.

Legally Sufficient Value

A value, consideration, or benefit that is recognized by law as adequate to support a binding contract.

Preexisting Duty

An obligation or duty that already exists under a contract, and performing it, therefore, does not constitute consideration for a new promise.