An accountant who does not comply with GAASs when conducting an audit and thereby fails to uncover a fraud or embezzlement by an employee of the company being audited can be sued for damages arising from this negligence.

Question

Quizplus · Accepted Answer

This is true as accountants are held to a certain standard when conducting audits, and failure to comply with GAASs can result in negligence that leads to damages for the company and its stakeholders.

An Accountant Who Does Not Comply with GAASs When Conducting