A Rule That Says That an Accountant Is Liable for Negligence

question 16

Multiple Choice

A rule that says that an accountant is liable for negligence to third parties who are projected users of the client's financial statements is known as ________.

• A) the foreseeability standard
• B) the Ultramares doctrine
• C) due diligence defense
• D) privity of contract

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Definitions:

Puritan Authorities

The leaders and officials within Puritan communities, especially in the 17th century, who enforced strict religious and social codes of conduct.

Massachusetts Bay Colony

A 17th-century British settlement in New England that became one of the early centers of the colony's government, trade, and religion.

Puritan Migrations

This term refers to the movement of English Puritans to North America, particularly to the Massachusetts Bay Colony, in the early 17th century to escape religious persecution.

Connecticut Valley

A major valley in the U.S. known for its fertile land, running through Connecticut and Massachusetts.