Manufacturing Inc. hires Neri, an accountant, to maintain the company's financial records. Neri does not act negligently or fail to perform any duty but fails to discover that Ollie, the firm's chief finance officer, is embezzling funds from the firm. With respect to the corporation's losses, the accountant is

Question

Quizplus · Accepted Answer

Since Neri, the accountant, did not act negligently or fail to perform any duty, she is not liable for the losses incurred by the corporation due to Ollie's embezzlement. The liability would typically rest with the individual committing the fraud, especially if the accountant fulfilled their duties without negligence.