Ordinary negligence vs gross negligence PDF

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Summary

The difference between ordinary negligence vs gross negligence...

Description

Ordinary negligence    

The situation where ones are blamed guilty of not taking precautionary measures which can cause harm and injury to others. It is often resulted from unintentional mistakes or careless actions which both cause the plaintiff suffered from loss or damage. Thus, the responsible party is legally liable for the loss and damage caused. For example, an auditor fails to detect the material misstatement in the financial statement which result the stakeholders rely on incorrect and unfair financial statement.

Gross negligence    

It is more extreme than ordinary negligence. The situation is where ones are guilty for their reckless actions which are done without thinking the consequences to others. It is often resulted from intentional actions which cause extreme damage and loss to others. For example, the auditors agree to hide the fraud made by board of directors after being offer with a large number of money. Surely, this action would give the company’s stakeholder a serious loss and damage....