When an Auditor Acts So Carelessly in the Application of Professional

question 2

Multiple Choice

When an auditor acts so carelessly in the application of professional standards that it implies a reckless disregard for the standards of due care is referred to as:

• A) Scienter
• B) Fraud
• C) Constructive fraud
• D) Negligence

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Definitions:

Actual Services

The genuine and realized services provided by a company, as opposed to planned or expected services.

Operating Department

A unit or division within an organization that is directly involved in performing the primary business activities of the company.

Budgeted Rates

Projected costs or expenses associated with specific activities or operations, used for budgeting and planning purposes.

Actual Rates

The current, real-time rates or prices for services, goods, or financial products in the market.