Question

What are the possible consequences of providing false information by a firm or accountant?

1) Negligent
2) Justifiable reliance
3) Pecuniary damages
4) All of the above

Answer 1

The possible consequences of providing false information include negligent, justifiable reliance, and pecuniary damages.

Step-by-step explanation:

The possible consequences of providing false information by a firm or accountant include:

1. Negligent: If a firm or accountant provides false information, they may be considered negligent for failing to exercise due care and competence in their work.
2. Justifiable reliance: Individuals who rely on false information provided by a firm or accountant may suffer financial losses or other damages.
3. Pecuniary damages: False information can result in financial harm to individuals or organizations who suffer loss as a result.
4. All of the above: Therefore, the correct answer is all of the above options.