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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