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16 June, 08:14

If an accounting firm is sued for negligently preparing a faulty financial report for a company that caused significant losses by those who relied on the accounting, the accounting firm is likely to be:

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  1. 16 June, 08:33
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    Professional are responsible for the faulty opinion due to negligence and ignoring the firm's obligation of duty of care towards the users of the information.

    Explanation:

    The accounting firm is held responsible for delivering value to the customer which is quality opinion that can be relied upon. If the accounting firm is making false opinion on the financial aspects of the company then the result will be that the company and the information user will suffer because they are making decisions based on the incorrect opinion. So the professionals would be held responsible to damaging the other party due to its negligence and avoidance of the imposed code of conduct and duty of care.
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