In this video, I covered terms related to negligence and Fraud such as ordinary negligence, gross negligence and fraud.
Ordinary negligence: Absence of reasonable care that can be expected of a person in a set of circumstances. For auditors, it is in terms of what other competent auditors would have done in the same situation.
Gross negligence: Lack of even slight care, tantamount to reckless behavior, that can be expected of a person. Some states do not distinguish between ordinary and gross negligence.
Fraud:Occurs when a misstatement is made and there is both the knowledge of its falsity and the intent to deceive.
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