Sun Corp. approved a merger plan with Cord Corp. One of the factors that led to the approval of the merger was the fact that the Cord's financial statements were audited by Frank & Co. CPAs. Sun had engaged Frank to audit Cord's financial statements. While performing the audit, Frank failed to discover certain irregularities that later caused Sun to suffer substantial losses. For the lawsuit to be successful, Sun must prove that Frank & Co., CPAs ________.
A) failed to exercise due care
B) knew of the irregularities
C) was grossly negligent
D) acted with scienter
A) failed to exercise due care
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Which of the following terms best describes a process that is designed to ensure that articles in academic journals are accurate and honest?
A) Authorship B) Peer review C) Currency D) Citations E) Social science
Answer the following statement(s) true (T) or false (F)
1. Investors make money off stocks through capital gains and dividends. 2. Coca-Cola and General Electric are both blue-chip stocks. 3. Stocks issued by lage, well-capitalized companies are called blue-chip stocks. 4. Blue-chip stocks are stocks that have been identified by Merrill Lynch as fast-growing can’t miss stocks. 5. Generally speaking, the higher the risk of a security, the higher its rate of return.
When the variance of a probability distribution is $360,000, the standard deviation equals:
A) $600 B) $3,600 C) $180,000 D) $12,000
The reason for carrying inventory is to disconnect one segment of the operating process from another so each part can operate at its optimum level.
Answer the following statement true (T) or false (F)