If an Accounting Firm Is Sued for Negligently Preparing a Faulty

Multiple Choice

If an accounting firm is sued for negligently preparing a faulty financial report for a company, it is likely that the accounting firm is:

A) not liable; a reasonable number of mistakes are expected to occur
B) liable if the mistake is one that an ordinary person (any person off the street) would have not made
C) held subject to a special statutory standard of care
D) held to have violated the principles of strict liability
E) none of the other choices