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In the Case of Phar-Mor V

Question 27

Multiple Choice

In the case of Phar-Mor v. Coopers & Lybrand the auditors were found guilty of fraud because


A) The auditors did not follow the generally accepted auditing standards (GAAS) at the time
B) The independent audit of financial statements was not required at the time
C) The auditors were grossly negligent and had a blatant disregard for the truth
D) The auditors were not independent and conspired with management to steal funds

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