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

Question

Quizplus · Accepted Answer

Constructive fraud refers to a situation where an auditor's actions are so careless that they imply a reckless disregard for the standards of due care, even if there was no intent to deceive.

When an Auditor Acts So Carelessly in the Application of Professional