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

Question

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

Quizplus · Accepted Answer

Farley intentionally made a misstatement to mislead his client, which can be considered as fraud. Additionally, Global Industries, Inc. justifiably relied on the misstatement and suffered a loss as a result. Therefore, Farley can be held liable for fraud.

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