In the case of Greenstein,Logan & Company v.Burgess Marketing,Inc.,the court evaluated Greenstein,Logan & Company's liability for inaccurate audits and said:
A) because Burgess's controller had under-accrued and underpaid the company's federal excise taxes, Burgess was responsible for the losses suffered.
B) because Greenstein, Logan had failed to comply with generally accepted accounting principles, they were deemed negligent and therefore liable for the losses.
C) because Greenstein, Logan had failed to comply with generally accepted auditing services, they were deemed negligent and therefore liable for the losses.
D) because Burgess's controller had erred and Greenstein, Logan had failed to discover the error, both were ordered to share liability for the losses.
E) only practicing certified public accountants may testify as expert witnesses against other certified public accountants, so the university professors who testified were not persuasive expert witnesses.
Correct Answer:
Verified
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