An accountant who performs an audit may be liable for failing to detect misconduct if a normal audit would have revealed it.

Question

An accountant who performs an audit may be liable for failing to detect misconduct if a normal audit would have revealed it.​

Quizplus · Accepted Answer

Accountants performing audits have a responsibility to detect and report any misconduct or fraud they discover during their audits. If they fail to do so, they may be held liable for any damages resulting from their negligence. However, this liability only applies if a normal audit would have revealed the misconduct, and the accountant did not follow generally accepted auditing standards.

An Accountant Who Performs an Audit May Be Liable for Failing