________ is a rule that says that an accountant is liable only for negligence to third parties who are in privity of contract or in a privity-like relationship with the accountant.
A) The foreseeability standard
B) The Ultramares doctrine
C) Due diligence defense
D) Disclaimer of opinion

Question

Quizplus · Accepted Answer

The Ultramares doctrine is a principle that holds an accountant liable for negligence only to third parties who are in privity of contract or in a privity-like relationship with the accountant. This means that accountants are not responsible for any harm caused to parties outside of this group due to accounting errors or omissions. The Ultramares doctrine is based on a landmark 1931 New York court case involving the accounting firm Ultramares Corporation.

________ Is a Rule That Says That an Accountant Is