Under common law,which of the following statements most accurately reflects the liability of a CPA who gives a fraudulent opinion on an audit of a client's financial statements?

Question

Quizplus · Accepted Answer

Under common law, a CPA who gives a fraudulent opinion on an audit of a client's financial statements is likely to be liable to any person who suffered a loss as a result of the fraud, even if the person was not known to the CPA or in privity of contract with the CPA. This is because fraud is considered an intentional tort, and the scope of liability for intentional torts generally extends to all foreseeable victims of the tortious conduct. Therefore, choice C is the best answer. Choices A, B, and D are incorrect because they are too narrow or do not reflect the general principles of liability for fraud.

Under Common Law,which of the Following Statements Most Accurately Reflects