An Accountant Is Liable for Negligence Only to Those Parties

question 54

Multiple Choice

An accountant is liable for negligence only to those parties in a limited class of intended users under which standard of accountant liability to third parties?

• A) the Ultramares doctrine
• B) the Restatement (Second) of Torts standard
• C) the strict liability standard
• D) the foreseeability standard
• E) the auditing liability standard

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Definitions:

Ciliary Muscles

A ring of smooth muscle fibers in the eye's middle layer that adjusts the lens's curvature to focus on objects at varying distances.

Pupil Diameter

Pupil diameter refers to the size of the opening in the iris of the eye, which regulates the amount of light entering the eye.

Accommodate

To adjust or make room for something, often referring to the eye's ability to change focus on objects at different distances.

Pigmented Epithelium

Layers of cells containing pigment, such as those found in the retina, which help absorb light and protect photoreceptors.