Scienter means:
A) The auditor exercised poor professional judgment.
B) The auditor knowingly sought to deceive the plaintiff.
C) The auditor failed to exercise due professional care.
D) All of the above.

Question

Quizplus · Accepted Answer

Scienter refers to the intent to deceive, manipulate, or defraud. It requires the auditor to have knowledge that the information they are providing is false or misleading, and to present it with the purpose of inducing the plaintiff to rely on it. Therefore, option B is the best choice because it accurately reflects the concept of scienter. Options A and C may also be factors in a legal case, but they do not encompass the specific requirements of scienter.

Scienter Means