Tom decides to invest in the stock of Triad Television after he reads Edgar's audit, which includes a statement, known by Edgar to be false, as to the value of numerous worthless securities held as corporate assets.If Tom sues Edgar in a state using the broadest test for determining an accountant's liability for negligence to third parties, he will be entitled to:

Question

Quizplus · Accepted Answer

In states using the broadest test for accountant liability, an accountant can be liable to any reasonably foreseeable third party who relies on the accountant's work, even if there is no direct contractual relationship.

Tom Decides to Invest in the Stock of Triad Television