Under common law,which of the following statements most accurately reflects the liability of a CPA who fraudulently gives an opinion on an audit of a client's financial statements?

Question

Quizplus · Accepted Answer

Under common law, a CPA who fraudulently gives an opinion on an audit of a client's financial statements can be held liable to any person who suffered a loss as a result of the fraud, even if they were not in privity of contract with the CPA. This is known as the "foreseeable user" approach, which states that a CPA is responsible for any persons or entities that are reasonably foreseeable as relying on the financial statements. Therefore, option C is the most accurate statement.

Under Common Law,which of the Following Statements Most Accurately Reflects