Pam certified a statement prepared by John, her employee, without checking John's work. He was never known to be anything but diligent and his integrity had never been questioned. The audit contained gross misstatements. Pam defends a suit against her claiming "due diligence." She will:

Question

Social Studies

Alfred Jensen

5 October, 22:28

Pam certified a statement prepared by John, her employee, without checking John's work. He was never known to be anything but diligent and his integrity had never been questioned. The audit contained gross misstatements. Pam defends a suit against her claiming "due diligence." She will:

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Answers (1)

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Delaney Kelly · Answer 1

Answer: Fail

Explanation:

Due diligence is the act of investigation or assessment which is based on certain reason for letting a person enter into a contract for another party or person if he/she satisfies the legal requirement.

According to the question, Pam will fail with the defending claim of due diligence as it requires reasonable and proper investigation and examination of John before letting him enter into a contract or performing official task. As this act of investigation was not performed, her claim will be inefficient for misstatements mistake.