The ordinary negligence is a simple mistake and carelessness but gross negligence is a serious issue. Gross negligence refers to not paying attention to the material facts even after knowing about the existence of immateriality in the financial statements. Gross negligence can be termed as a deliberate action whereas ordinary negligence is accidental. To explain: The bank is likely to prevail on the causes of action that has been raised or not.

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Chapter 20, Problem 20.26P

To determine

Introduction: The ordinary negligence is a simple mistake and carelessness but gross negligence is a serious issue. Gross negligence refers to not paying attention to the material facts even after knowing about the existence of immateriality in the financial statements. Gross negligence can be termed as a deliberate action whereas ordinary negligence is accidental.

To explain: The bank is likely to prevail on the causes of action that has been raised or not.

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