The Ultramares v.Touche case established that auditors could be held liable to a known third party for ordinary negligence.

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The Ultramares v.Touche case, also known as the Credit Alliance v. Arthur Young & Co. case, established the principle that auditors could be held liable to a known third party for ordinary negligence. This case set a precedent for auditors' responsibility to exercise due care in their work and reinforced the importance of accountability in the auditing profession.

The Ultramares V