A person not in privity with an accountant is prohibited from recovering for malpractice when the accountant had no knowledge of any use that could affect that party.

Question

Quizplus · Accepted Answer

This statement is based on the lack of privity doctrine, which limits the liability of the accountant to only those parties with whom they have a contractual relationship or are otherwise in a direct professional relationship. This means that a person who is not in privity with the accountant cannot recover for malpractice unless they can demonstrate some kind of duty or relationship that creates a legal obligation for the accountant to act in their best interests. Additionally, if the accountant had no knowledge of any use that could affect that party, they would have no reason to owe a duty to that person and therefore would not be liable for any damages resulting from malpractice.

A Person Not in Privity with an Accountant Is Prohibited