Delaney is an accountant charged with negligence by Estimation & Valuation Services Inc., a client. Delaney may successfully defend against the claim if he can show that
A) scienter was lacking.
B) he complied with all International Financial Reporting Standards.
C) the negligence was not the proximate cause of the client's losses.
D) the negligence was only contributory.

Question

Delaney is an accountant charged with negligence by Estimation & Valuation Services Inc., a client. Delaney may successfully defend against the claim if he can show that​
A) ​scienter was lacking.
B) ​he complied with all International Financial Reporting Standards.
C) ​the negligence was not the proximate cause of the client's losses.
D) ​the negligence was only contributory.

Quizplus · Accepted Answer

If Delaney can prove that the negligence was not the proximate cause of the client's losses, he may successfully defend against the claim. Proximate cause means that the negligence caused the actual harm suffered by the client. If Delaney can show that even if he had not been negligent, the client would have suffered the same losses, he may not be held liable. Options A, B, and D are not relevant defenses in this case.

Delaney Is an Accountant Charged with Negligence by Estimation