Adam claimed that N & A,its accounting firm,negligently prepared an audit.To hold the accounting firm liable,which of the following elements must be established?

Question

Quizplus · Accepted Answer

To hold the accounting firm liable for negligence, it must be established that they failed to exercise due care. Scienter or guilty knowledge is required for a claim of fraud, a fiduciary relationship may be relevant in some cases but is not an essential element for a claim of negligence, and an executed engagement letter is simply a contract outlining the scope of the accountant's work and does not establish liability.

Adam Claimed That N & A,its Accounting Firm,negligently Prepared an Audit.To