________ Is a Rule That Limits the Liability of an Accountant

question 49

Multiple Choice

________ is a rule that limits the liability of an accountant or other securities professional to his or her personal degree of fault.

• A)Privity of contract
• B)The due diligence defense
• C)Proportionate liability
• D)The Ultramares doctrine

---

Definitions:

Transmitted

The process by which something is sent or conveyed from one place or person to another, especially information or diseases.

Message Decoding

The process of interpreting and understanding the meaning of a received message.

Financial Reports

Official documents that communicate an organization's financial status to stakeholders, including balance sheets, income statements, and statements of cash flows.

Accounting Team

A group of professionals responsible for managing and reporting an organization’s financial transactions and maintaining its financial health.