Question

Debbie and Steve are discussing a lecture given by their ethics professor after class one day. The professor said that misstatements of earnings are always unethical. Debbie agree with this situation but Steve does not. What statement might Steve make to best support his point of view?

a. it depends on whether the misstatements were made deliberately
b. it depends on whether a user relied on the financial statements
c. it depends on whether the statements lead to a modified or unmodified opinion
D all are valid

Answer 1

Answer: Option(a) is correct option

Explanation:

According to the question,as Debbie agrees with misstatement related with earning are unethical in manner but Steve is not satisfied with professor's lecture.Steve can base is disagreement on whether dependency of misstatements depend on intention of speaker.

Other options are incorrect because user reliance on financial statement, statements leading towards unmodified and modified version and all statements are not valid. Thus,the correct option is option(a)