Under the known user rule: ______.

Question

Quizplus · Accepted Answer

Under the known user rule, the accountant is liable to third parties who experience a loss as a result of the accountant's negligence but only if the accountant knew the third party would be using the work product. This means that the accountant should take care to identify potential third parties who may rely on their work and take appropriate steps to provide accurate and reliable information. However, if the accountant did not know that the third party would be using their work product, they may not be held liable for any resulting losses.

Under the Known User Rule: ______