Compliance with GAAP was an unsuccessful defense in which of the following court cases?
A)Credit Alliance v.Arthur Andersen & Co.
B)Ultramares Corp.v.Touche.
C)Ernst and Ernst v.Hochfelder.
D)Herzfeld v.Laventhol,Krekstein,Horwath & Horwath.

Question

Quizplus · Accepted Answer

In Herzfeld v. Laventhol, Krekstein, Horwath & Horwath, compliance with GAAP was not a successful defense because the court found that merely following GAAP did not absolve the auditors from their responsibility to detect fraud.

Compliance with GAAP Was an Unsuccessful Defense in Which of the Following