If a CPA recklessly abandons standards of due care and diligence while performing an audit, he or she may be held liable to unknown third parties for:

Question

Quizplus · Accepted Answer

Gross negligence refers to a severe lack of due care and diligence, significantly beyond ordinary negligence. When a CPA recklessly abandons standards of due care and diligence during an audit, it constitutes gross negligence, making them potentially liable to unknown third parties.

If a CPA Recklessly Abandons Standards of Due Care and Diligence