A rule that says that an accountant is liable for negligence to third parties who are projected users of the client's financial statements is known as ________.
A) the foreseeability standard
B) the Ultramares doctrine
C) due diligence defense
D) privity of contract

Question

Quizplus · Accepted Answer

The foreseeability standard holds accountants liable for negligence to third parties who are foreseeable users of the client's financial statements, expanding the scope of liability beyond those with whom the accountant has direct contractual relationships.

A Rule That Says That an Accountant Is Liable for Negligence