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An accounting firm was taken to court because none, of 17 fraudulent invoices, showed up in their…

An accounting firm was taken to court because none, of 17 fraudulent invoices, showed up in their…

An accounting firm was taken to court because none, of 17 fraudulent invoices, showed up in their sample of 100 taken in the course of an audit. After the company failed, the accounting firm was sued by a creditor who had relied on their certification of the company's financial statements. Was the accounting firm negligent? Assume there were 1000 invoices total.