Which of the following cases provides auditors the broadest exposure for liability to third parties for ordinary negligence under common law?
A) Credit Alliance v. Arthur Andersen.
B) Fleet National Bank v. Gloucester Co.
C) Rosenblum, Inc. v. Adler.
D) Ultramares.

Question

Quizplus · Accepted Answer

The Rosenblum, Inc. v. Adler case established that auditors could be held liable to any third party that the auditors could reasonably foresee would rely on their financial statements, thus broadening the scope of liability for ordinary negligence.

Which of the Following Cases Provides Auditors the Broadest Exposure