Which of the following provides the broadest standard for holding accountants liable to third parties for negligence?
A) due diligence defense
B) the foreseeability standard
C) the Ultramares doctrine
D) exclusionary rule

Question

Quizplus · Accepted Answer

The foreseeability standard provides the broadest basis for holding accountants liable to third parties for negligence because it suggests that accountants could be held liable to any parties that could foreseeably rely on their financial statements or audits. This is broader than the Ultramares doctrine, which limits liability to parties in privity of contract or those known to be relying on the financial statements, and broader than specific defenses or rules that limit liability.

Which of the Following Provides the Broadest Standard for Holding