Under the ________, an accountant is liable to known third-party users of the accountant's work product and also to those in the limited class whose reliance on the work the accountant specifically foresaw.

Question

Quizplus · Accepted Answer

The Restatement test expands the liability of accountants beyond the strict privity requirements of the Ultramares rule. Under the Restatement test, an accountant is liable not only to the parties with whom the accountant is in privity but also to any third parties whom the accountant specifically foresaw as users of the work product. This includes known users and those in a limited class whose reliance on the work the accountant could reasonably foresee.

Under the ________, an Accountant Is Liable to Known Third-Party