A lack of reasonable care that may be characterized by the failure of auditors to follow GAAS in the conduct of the audit is known as
A) Constructive fraud.
B) Fraud.
C) Gross negligence.
D) Ordinary negligence.

Question

Quizplus · Accepted Answer

The lack of reasonable care that results from the failure of auditors to follow GAAS in the conduct of the audit is known as ordinary negligence. This type of negligence may result from unintentional errors or omissions in the audit process. It is a lower level of negligence than gross negligence, which involves a reckless disregard for professional standards and may result in severe consequences for the audit firm. Constructive fraud and fraud involve intentional misrepresentations or omissions of material information, and are not related to negligence.

A Lack of Reasonable Care That May Be Characterized by the Failure