Question: a. Compare an auditors liability to third parties for negligence under Ultramars, Credit Alliance, 1965 Restatement (Second) of Torts, and Rosenblum. Which approach do you

a. Compare an auditor’s liability to third parties for negligence under Ultramar’s, Credit Alliance, 1965 Restatement (Second) of Torts, and Rosenblum. Which approach do you think auditors prefer? Why?

b. Which approach do you think is best for society? Why?

Step by Step Solution

★★★★★

3.45 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Under the Ultramars precedent the auditor is liable for negligence only to third parties who are the primary beneficiary of the audit as specified i... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

222-B-A-A-B-R (815).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Which approach do you think should be relied on more heavily for strategy formulationthe quantitative or qualitative approach?

Auditors may be liable to third parties for fraud in several ways. Required: a. Identify auditors liability for fraud to third parties. b. Distinguish between fraud and constructive fraud. c. What is...

Which approach do you believe is the most effective at creating intrusion value? Which approach is best at creating brand recognition and recall? Brand loyalty?

TUTORIAL 2_PROFESSIONAL LIABILITY 1.What are the potential causes of action against an auditor under a breach of contract lawsuit? The potential causes for action against the auditor for breach of...

(a) Auditors and accountants can minimize their potential liability in a number of ways: -Periodic rotation of audit engagement partner -Prohibit certain non-audit services for public company audit...

When determining an auditor's liability to third parties for negligence, which case approach would be best for the auditor? a . Ultramares, because the auditor is liable for negligence only to third...

Auditors' Liability to Third Parties Summarizes the results of auditor's liability to third parties under each of the following cases: Ultramarines, Credit Alliance, 1965 Restatements (Second) of...

1 . What is Auditors' Liability to Third Parties 2 . Please explain the results of auditor's liability to third parties under each of the following cases: Ultramares, Credit Alliance, 1 9 6 5...

At December 31 the cash balance per books of Heinisch Company was $12,485.20, and the cash balance per the bank statement was $20,154.30. The bank did not make any errors, but two errors were made by...

Sanchez, Inc., is considering the sale of two bond issues. Choice A is a $1,200,000 bond issue that pays semiannual interest of $64,000 and is due in 20 years. Choice B is a $1,200,000 bond issue...

Evaluate. ( 7 x - 8 e 3 x e 0 . 3 ) d x ( 7 x - 8 e 3 x e 0 . 3 ) d x = ( Type an exact answer. Use parentheses to clearly denote the argument of each function. )

Please help. Thank you in advance. Lue lidt additional analysis was needed so that a sound product costing method could be recommended. One pose would be to increase the number of overhead rates....

You are a pension consultant who was recently engaged by Awesome Benefit Company (ABC) to become the valuation actuary for their frozen defined benefit pension plan. You have also been hired to help...

You have been trapped in a labyrinth, and your only hope to escape is to cast the magic spell that will free Milestone 1 : Escape from Your Personal Labyrinth Your next task is to escape from a...

The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...

Case Study Suppose that you are the consultant hired by a manufacturing company to design a suitable inventory management strategy for its Alloy #1 products for determining the weekly production...

Th e two equilibrium conditions aggregate demandaggregate supply approach and SI approach can be used to develop a graphical approach to the derivation of the IS curve. Explain.

Give an example of a threat and corresponding safeguard for each of the following activities of a professional accountant in public practice. A. Professional appointment B. Conflicts of interest C....

What are contingent fees? Give two examples and explain why accountants in public practice should or should not take them.

An auditor who is asked to replace another auditor, or who is considering a new engagement for a company currently audited by another auditor must consider what safeguards are appropriate. Discuss...

1) Suppose that the duration of a particular type of criminal trial is known to be normally distributed with a mean of 21 days and a standard deviation of seven days. (a) In words, define the random...

Question 23 3 PLS Which of the following provides a valid description of the correlation between two variables? O Melissa is a mountaineer who has climbed some of the world's tallest mountains. On...

o- oraw ine iviv L uesign patiern