Which of the Following Standards Is Used in Applying the Reasonably

question 6

Multiple Choice

Which of the following standards is used in applying the reasonably foreseeable users test regarding accountant liability to third parties?

• A) Strict product liability
• B) Negligence
• C) Fraud
• D) Breach of contract
• E) Privity

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Definitions:

Implied Ratification

The tacit approval or acceptance of an act by behaving in a manner that assumes the act was properly authorized.

License

A permit from an authority to own or use something, do a particular thing, or carry on a trade.

Certain Professions

Specific occupations that require specialized education, skills, or certifications, often regulated by professional bodies or laws.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.