To prevail in a suit alleging negligence, a third party must prove that the auditor had a duty to the auditor's client to exercise due care.

Question

Quizplus · Accepted Answer

To prevail in a suit alleging negligence, a third party must prove that the auditor had a duty of care to the third party, not just to the auditor's client. This is known as the "foreseeable plaintiff" requirement. The duty of care extends to third parties who are known or reasonably foreseeable to rely on the auditor's work, such as investors or creditors.

To Prevail in a Suit Alleging Negligence, a Third Party