In the Case of a Negligently Prepared Audit,a Reasonably Foreseeable

question 6

True/False

In the case of a negligently prepared audit,a reasonably foreseeable use and reliance by a number of individual third parties establishes that the professional's duty of care exists.By applying the judiciary's imposed policy considerations at the second step of the test,the court is able to shield the professional from liability by limiting the use of the audit to its statutory purpose.

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Definitions:

Internal Factor

An influence, element, or condition within an organization that affects its operations and outcomes.

Person Perception

The process of forming impressions and making judgments about other people's traits, intentions, and behaviors.

Perceiver Characteristics

Attributes or traits of the individual observing and interpreting others' behaviors, such as biases, attitudes, experiences, and personality, that affect their perceptions.

Pollyanna Principle

The tendency for people to remember pleasant items more accurately than unpleasant ones.