THIS IS APPLICABLE TO AMERICAN LEGAL SYSTEM:

Explain if, and why an accountant will be held liable to:

1. its client, 
2. to 3rd party intended users of the financial statements and audits he prepares for his client, and 
3. to reasonable foreseeable users of the work he prepared for his client. 

Identify who reasonable foreseeable users would be and why the accountant is responsible to them in the absence of privity.

Answer rating: 100% (QA)

1 Liability to Clients An accountant can be held liable to a client if they exhibit negligence or fraud during their duties In the American legal syst... View the full answer