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:

Question

Quizplus · Accepted Answer

Due diligence involves taking reasonable steps to avoid committing a tort or offense. In this case, Pam failed to perform a reasonable investigation into the work prepared by her employee, John, regardless of his past performance. This lack of verification, especially in contexts such as financial audits, does not meet the standard of due diligence required, leading to her likely failure in defending against the claim.

Pam Certified a Statement Prepared by John, Her Employee, Without