Negligent nonfeasance would be said to occur when
A)An auditor issues an unqualified opinion for financial statements he or she knows to be materially misstated
B)An auditor fails to use appropriate accounting procedures and thereby fails to discover a client's internal practices
C)An auditor fails to report an instance of financial fraud to the SEC
D)An auditor intentionally skips parts of the audit plan to cut costs and increase profitability

Question

Quizplus · Accepted Answer

Negligent nonfeasance occurs when an auditor fails to perform an action that should have been performed, such as the failure to use appropriate accounting procedures to discover a client's internal practices. Option A describes fraudulent misrepresentation, Option C describes illegal acts, and Option D describes intentional misrepresentation.

Negligent Nonfeasance Would Be Said to Occur When