Courts generally impose liability on the accountant when a total stranger gets possession of the accountant's work and then sustains a loss because of a false statement in the work.

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Courts typically do not impose liability on accountants for losses sustained by total strangers who come into possession of the accountant's work, unless the accountant was aware that the work would be used by the stranger for a specific purpose. Liability is generally limited to parties for whom the work was intended or whom the accountant knew would rely on the work.

Courts Generally Impose Liability on the Accountant When a Total