Under common law in states using the Restatement of Torts rule,third-party users must prove gross negligence or fraud unless they classify themselves as third-party beneficiaries of the financial statements.

Question

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Under the Restatement of Torts rule, third-party users do not need to prove gross negligence or fraud; they only need to show that the accountant knew the financial statements would be used by them for a specific purpose.

Under Common Law in States Using the Restatement of Torts