Frye, an accountant, intentionally misstates a material fact to mislead Global Industries Inc., a client. Global justifiably relies on the misstatement to its detriment. Frye is most likely liable for
A)fraud.
B)malpractice.
C)negligence.
D)none of the choices.

Question

Quizplus · Accepted Answer

Frye's intentional misstatement of a material fact to mislead a client, which the client justifiably relied on to its detriment, constitutes fraud. Fraud involves intentional deception to secure unfair or unlawful gain.

Frye, an Accountant, Intentionally Misstates a Material Fact to Mislead