Question

Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an​ opinion, even though there was no intent to deceive financial statement users. This description is the legal term​ for:​

(A) fraud.
(B) gross negligence.
(C) ordinary negligence.
(D) constructive fraud.

Answer 1

Answer: the correct answer is D. constructive fraud

Explanation:

Constructive fraud is a legal term describing a situation where a person or entity gained an unfair position over another by deceitful or unfair methods.