Accountants cannot be held liable for their negligence in preparing unaudited financial statements.

Question

Quizplus · Accepted Answer

Accountants can be held liable for their negligence in preparing unaudited financial statements if their actions or omissions result in harm to the client or a third-party person or entity. While the level of liability may differ from that of audited financial statements, accountants are still expected to exercise a reasonable level of care, skill, and judgment in their work. Additionally, some jurisdictions may have specific regulations or professional standards that impose legal or ethical responsibilities on accountants regarding unaudited financial statements.

Accountants Cannot Be Held Liable for Their Negligence in Preparing