Answer the following statements true (T) or false (F)

1. Constructive fraud is characterized by an intentional act designed to deceive, mislead or
injure the rights of another person.
2. A plaintiff, who is a normal trade creditor, can collect damages under common law for
negligence from the corporation's auditors.
3. Primary beneficiaries are third parties who have paid to have an audit performed.
4. Due professional care occurs when an auditor observes all the rules of conduct for the
profession and applies all the standards of the profession.


1. FALSE
2. FALSE
3. FALSE
4. TRUE

Business

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