An auditor who accepts a client's explanation regarding financial irregularities, despite contradictory evidence, could be considered grossly negligent.

Question

Quizplus · Accepted Answer

Accepting a client's explanation for financial irregularities without proper scrutiny, especially in the presence of contradictory evidence, can be considered a failure to exercise the due care and diligence expected of an auditor, thus constituting gross negligence.

An Auditor Who Accepts a Client's Explanation Regarding Financial Irregularities