Which of the following statements is correct regarding the liability of a CPA for services performed?
A. A CPA's work is not guaranteed to be accurate even though the CPA acted in a reasonably competent and professional manner.
B. A CPA is negligent for exercising only that degree of care a reasonably competent CPA would exercise under the circumstances.
C. A CPA's liability for negligence extends only to the client and no further.
D. A CPA's liability for fraud extends only to the client and no further.
Answer: A. A CPA's work is not guaranteed to be accurate even though the CPA acted in a reasonably competent and professional manner.
You might also like to view...
Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want now has become a(n) ________
A) need B) necessity C) demand D) exchange E) transaction
Recording is essential for the transfer of ownership
Indicate whether the statement is true or false