An auditor,using the same degree of due care as other members of the profession,fails to create an adequate allowance for bad debts.This occurrence is an example of

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This occurrence is an example of an error in judgment, as the auditor exercised due care but made a mistake in creating the allowance for bad debts. It is not an example of negligence because the auditor exercised the same degree of care as other professionals, and it is not fraud because there was no intent to deceive. Constructive negligence is not a recognized concept.

An Auditor,using the Same Degree of Due Care as Other