Which of the following concepts represents the most expansive aspect of liability for auditors?
A) Third-Party Beneficiary.
B) Identified User.
C) Foreseen Party.
D) Foreseeable Party.

Question

Quizplus · Accepted Answer

Foreseeable party refers to anyone who can reasonably be expected to rely on the audited financial statements, regardless of whether they are specifically identified as a user or beneficiary. This concept represents the broadest scope of potential liability for auditors. While the other concepts (Third-Party Beneficiary, Identified User, and Foreseen Party) also involve the auditor's responsibility to parties beyond the client, they involve more specific circumstances and do not encompass as wide a range of potential claimants.

Which of the Following Concepts Represents the Most Expansive Aspect