An accountant who prepares a fraudulent financial statement is liable to anyone who can be reasonably foreseen as relying on that statement.

Question

Quizplus · Accepted Answer

Because fraud involves a deliberate deception, the courts have no difficulty extending protection to a wide class of third parties. Thus, an accountant who prepares a fraudulent financial statement is liable to anyone who can be reasonably foreseen as relying on that statement.

An Accountant Who Prepares a Fraudulent Financial Statement Is Liable