An accountant's liability to third persons for negligence is generally barred by the privity doctrine unless the accountant should have foreseen that the third party would rely on the audit.

Question

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The privity doctrine limits an accountant's liability to third parties unless the accountant could reasonably foresee that the third party would rely on the audit, which creates an exception to the privity requirement.

An Accountant's Liability to Third Persons for Negligence Is Generally