Assume a third party such as a successor audit firm quickly discovers a fraud that the predecessor

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Assume a third party such as a successor audit firm quickly discovers a fraud that the predecessor auditor has overlooked for years. Do you think this provides evidence supporting scienter? Explain.

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Ethical Obligations and Decision Making in Accounting Text and Cases

ISBN: 978-1259969461

5th edition

Authors: Steven M. Mintz, Roselyn E. Morris

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Question Posted: Sep 18, 2019 10:46 AM

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Assume a third party such as a successor audit firm quickly discovers a fraud that the predecessor

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Step by Step Answer:

Scienter means having knowledge of a falsehood There is no way to know for sure whether a predecessor auditor ended the engagement with a client because they discovered a fraud However if fraud did ex...View the full answer

Ethical Obligations and Decision Making in Accounting Text and Cases

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