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Due care is not related to:
Suggested Answer: C
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Officers and directors of a company are expected to act carefully in fulfilling their tasks. A director shall act in good faith, with the care an ordinarily prudent person in a like position would exercise under similar circumstances and in a manner he reasonably believes is in the best interest of the enterprise. The notion of profit would tend to go against the due care principle.
Source: ANDRESS, Mandy, Exam Cram CISSP, Coriolis, 2001, Chapter 10: Law, Investigation, and Ethics (page 186).
32 comments · newest first
MI
Mi
10 months ago
I thought due care had something to do with profits too.
SH
Shawn
10 months ago
Good faith and best interest are definitely linked to due care.
ED
Eden
10 months ago
Wait, how is profit not related? That seems off.
YE
Yen
10 months ago
Totally agree, it's not about profit at all!
JE
Jesusita
11 months ago
Due care is all about being careful and responsible.
CH
Chery
11 months ago
Best interest sounds like it could be related to due care, but I feel like profit is the odd one out here.
DE
Detra
11 months ago
I practiced a similar question, and I think the answer might be C, but I’m not completely confident.
BR
Brande
11 months ago
I think due care is definitely related to good faith and the prudent man standard, but profit seems off.
MI
Mitsue
12 months ago
I remember that due care is about acting responsibly, but I'm not sure how profit fits into that.
GO
Goldie
12 months ago
Profit doesn't seem like it would be related to due care, which is more about acting in a responsible way. I'm leaning towards A, good faith, since that's about honesty and integrity.
ME
Melodie
12 months ago
Okay, let me see. Due care is about being diligent and careful, so it's probably not related to profit, which is more about financial gain. I'll go with B, prudent man.
MA
Mammie
1 year ago
Hmm, I'm not totally sure about this one. Due care seems to be about acting responsibly, so I'm not sure if profit is the right answer. I'll have to think it through more carefully.
CA
Carri
1 year ago
This one seems straightforward - due care is related to things like good faith and prudent man, so the answer must be C, profit.
LA
Larue
1 year ago
Ha! C is the answer, everyone knows accountants only care about the bottom line, not ethics.
GE
Geoffrey
1 year ago
True, but ultimately, the best interest of the client should always come first.
LA
Laine
1 year ago
I think it's important for professionals to consider both profit and ethics in their decision-making.
JA
Jamal
1 year ago
I disagree, accountants should always act in the best interest of their clients.
DA
Dalene
1 year ago
D) Best interest
BA
Basilia
1 year ago
C) Profit
WI
Wilford
1 year ago
B) Prudent man
BE
Bethanie
1 year ago
A) Good faith
BR
Brittni
1 year ago
I'm going with D. Due care is all about acting in the best interest of the client, not personal gain.
RO
Roosevelt
1 year ago
D) Best interest is definitely a crucial part of due care, it's about prioritizing the client's needs over your own.
LO
Louisa
1 year ago
B) Prudent man standard is another key aspect of due care, it's about acting with caution and diligence.
NA
Natalya
1 year ago
A) Good faith is also important in due care, it's about being honest and fair.
TA
Tatum
1 year ago
That makes sense, I see your point. Thanks for clarifying!
LO
Lottie
1 year ago
I disagree, I believe it's D) Best interest because due care is about acting in the best interest of others.
TA
Tatum
1 year ago
I think the answer is C) Profit.
JO
Jovita
2 years ago
Definitely B. A prudent man would always act in the best interest of others, not for profit.
LI
Linsey
1 year ago
I think profit is important in business decisions.
RE
Rebbecca
1 year ago
I agree, acting in good faith is important too.
PA
Patrick
2 years ago
I think the answer is C. Profit has nothing to do with due care.