The ________ is a rule that says that an accountant is liable only for negligence to third parties who are in privity of contract or in a privity-like relationship with the accountant.
A) foreseeability standard
B) Ultramares doctrine
C) due diligence defense
D) disclaimer of opinion

Question

Quizplus · Accepted Answer

The Ultramares doctrine is a well-known legal precedent that restricts the liability of accountants to third parties who are in privity of contract or in a privity-like relationship with the accountant. It was established in the case of Ultramares Corporation v. Touche in 1931 and has been followed by courts in many jurisdictions. The other choices are not related to this doctrine.

The ________ Is a Rule That Says That an Accountant