What Is the Rationale Behind the Restatement Test of Accountant

question 79

Multiple Choice

What is the rationale behind the Restatement test of accountant liability to third parties?

• A) The economy will benefit if investors recognize that they have sufficient rights of recovery.
• B) It is only fair to hold accountants liable if they are in privity with a plaintiff.
• C) Much of what accountants do is prepare work for parties that are not their clients and, therefore, it makes sense for accountants to owe a duty to intended receivers.
• D) Potential investors should have a route of recovery even if they could not be foreseen by accountants.
• E) The general public should have a route of recovery even if they could not be foreseen by the accountant.

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Definitions:

Autism Spectrum Disorder

A developmental disorder that affects communication and behavior, ranging in severity across individuals.

Mirroring Activity

The process by which individuals subconsciously imitate the gestures, speech patterns, or attitudes of others, often to create or maintain social bonds.

Fear Of Strangers

The common fear and apprehension that infants and toddlers show towards individuals they do not recognize, often manifesting around the age of six to twelve months.

Object Permanence

Object permanence is the understanding that objects continue to exist even when they cannot be seen, heard, or touched, typically developing in infants around 8 months of age.