Which of the following statements concerning the Ultramares Corp.v.Touche case is not true?
A)This case was brought under common law liability.
B)This case provided a test to determine whether a third party qualified as a primary beneficiary and could bring suit for ordinary negligence.
C)This case established the rights of third parties to bring suits against auditors under common law liability.
D)This case concluded that auditors' liability to third parties would be generally limited to gross negligence or fraud.

Question

Quizplus · Accepted Answer

The Ultramares Corp. v. Touche case did not provide a test to determine whether a third party qualified as a primary beneficiary and could bring suit for ordinary negligence. Instead, it established that auditors can be held liable to third parties under common law liability if the third party is an intended beneficiary of the audit report and the auditor was aware of the third party's reliance on the report. The case concluded that auditors' liability to third parties would be generally limited to gross negligence or fraud.

Which of the Following Statements Concerning the Ultramares Corp