A CPA will most likely be negligent when the CPA fails to

Question

Quizplus · Accepted Answer

A CPA has a duty to correct errors discovered in the CPA's previously issued audit reports. Failure to do so can be considered negligence as it can result in financial harm to the clients and users of the financial statements. Detecting all fraudulent activities or warning customers of embezzlement are not always the sole responsibility of the CPA, though they should take appropriate actions if they become aware of such activities. Including a negligence disclaimer in the engagement letter does not absolve the CPA of their responsibility to perform their duties with due care and competence.

A CPA Will Most Likely Be Negligent When the CPA