An Accountant Who Is Being Sued by a Third Person

question 25

Multiple Choice

An accountant who is being sued by a third person for malpractice based on fraud will be able to avoid liability if the accountant can show:

• A) contributory negligence on the part of the plaintiff.
• B) that an exculpatory clause applies.
• C) that the plaintiff did not rely on the false statement.
• D) the absence of privity of contract.

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Definitions:

Ethnic Group

An ethnic group is a category of people who identify with each other based on common ancestral, social, cultural, or national experiences.

Composition

The act or process of combining parts or elements to form a whole, such as in writing, music, or the visual arts.

2050

A future year often cited in the context of projections, forecasts, or speculations about social, environmental, and technological developments.

Ghettos

Urban areas where minorities or marginalized communities are confined or segregated, often under poor living conditions.