Pam certified a statement prepared by John, her employee, without checking John's work.He was never known to be anything but diligent and his integrity had never been questioned.The audit contained gross misstatements.Pam defends a suit against her claiming "due diligence." She will:
A) succeed, since she had no reason to believe her employee would lie.
B) succeed, because a reasonable person would not have inquired further.
C) fail, because due diligence requires reasonable investigation.
D) fail, because she is automatically liable for her employee's act.
Correct Answer:
Verified
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