Accounting Chapter 5, Problem 21

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Issue:

Business

 

Written by:

Thomas K

 

Date added:

July 13, 2014

 

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A

 

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2 / 389

 

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The CPA is normally not liable for failure to detect fraud, irregularities, etc. unless the "normal" audit would have detected it or if the accountant, by agreement, has undertaken greater responsibility such as defalcation audit. In this example situation, Sparks, Watts, and Wilcox are not liable to their clients for breach of contract for failure to find the fraud and for negligence because they did exercise due care in their performance...
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unless the "normal" audit would have detected it or if the accountant, by agreement, has undertaken greater responsibility such as defalcation audit. In this example situation, Sparks, Watts, and Wilcox are not liable to their clients for breach of contract for failure to find the fraud and for negligence because they did exercise due care in their performance...
displayed 300 characters

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