A court will generally allow an action by a third party who acquires an accountant's work product without the accountant's knowledge or permission and is damaged because of a false statement in the work.

Question

Quizplus · Accepted Answer

A court typically requires a direct relationship or privity between the accountant and the third party, or at least that the accountant knew the third party would rely on the work product, for liability to be established.

A Court Will Generally Allow an Action by a Third