The leading precedent-setting auditing case in third-party liability is:

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Ultramares Corporation v. Touche is considered the leading precedent-setting case in third-party liability for auditors. The court held that auditors owe a duty of care to third parties only if they are intended beneficiaries of the audit engagement or if there is a close relationship between the auditor and the third party. This case established the concept of privity of contract in auditing.

The Leading Precedent-Setting Auditing Case in Third-Party Liability Is