The Credit Alliance approach to the concept of foreseen users states that to be liable to third parties, an auditor (1) must know and intend that the work product would be used by the third-party for a specific purpose, and (2) the knowledge and intent must be evidenced by the auditor's conduct.

Question

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This is the basic principle of Credit Alliance approach to foreseen users, which requires the auditor to have knowledge and intent that the work product would be used by a third-party for a specific purpose, and this knowledge and intent must be evident from the auditor's conduct, in order to be liable to third parties.

The Credit Alliance Approach to the Concept of Foreseen Users