A broad interpretation of the rights of third-party beneficiaries holds that users that the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract.This is known as the concept of:

Question

Quizplus · Accepted Answer

The correct concept is that of foreseeable users, who are users that the auditor should have been able to foresee as being likely users of financial statements and who have the same rights as those with privity of contract. Choice A and C are similar but not the exact term used. Choice D is not relevant to the concept discussed.

A Broad Interpretation of the Rights of Third-Party Beneficiaries Holds