The broadest rule to define the parameters of an accountant's liability to third parties applies in most of the states in the United States.

Question

Quizplus · Accepted Answer

The broadest rule, known as the "foreseeability" standard, is not the most commonly applied rule across most states. Instead, many states follow the "privity" or "near privity" standards, which limit liability to parties in direct contractual relationships or close to it.

The Broadest Rule to Define the Parameters of an Accountant's