Which of the following standards have most states adopted regarding accountant liability for negligence to third parties?
A)the Ultramares doctrine
B)the foreseeability standard
C)Section 552 of the Restatement (Second)of Torts
D)the due diligence standard

Question

Quizplus · Accepted Answer

Section 552 of the Restatement (Second) of Torts, which imposes liability on accountants for negligence to third parties when the accountants knew or should have known that the third party would rely on their work, has been widely adopted by most states. The Ultramares doctrine, which limits accountants' liability to only those parties with whom they have privity of contract, is no longer widely followed. The foreseeability standard and due diligence standard are not typically used in regards to accountant liability for negligence to third parties.

Which of the Following Standards Have Most States Adopted Regarding