The "primary benefit" test held that an accountant would be liable for negligence only to those who are in privity of contract or privity-like relationships with the accountant.

Question

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The statement correctly describes the "primary benefit" test, which was an earlier approach to determining an accountant's liability for negligence. Under this test, only those individuals who had a direct contractual or privity-like relationship with the accountant could potentially bring a claim for professional negligence. However, this approach has since been modified by many jurisdictions to allow for a broader range of potential plaintiffs to bring claims against accountants for their negligent conduct.

The "Primary Benefit" Test Held That an Accountant Would Be