Ben Is an Accountant Whose Clients Include Capital Inc

question 24

Multiple Choice

Ben is an accountant whose clients include Capital Inc. Under the Ultramares rule, if Ben is negligent in his work for Capital, he could be liable to the client and

• A)any third party.
• B)no third party with whom the accountant is not in privity or "near privity."
• C)third parties who are foreseen users of the work.
• D)third parties who are reasonably foreseeable users of the work.

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Definitions:

Objectively Gathering

The process of collecting data or information without bias, ensuring accuracy and reliability in research or assessments.

Information

Data that have been processed, organized, or structured in a given context to be meaningful or useful to its receiver.

Reasoned Thought

The process of thinking about something in a logical, rational manner to form a conclusion or judgment.

Hierarchical Process

A structured approach to decision-making or problem-solving where levels of importance or authority are clearly defined from highest to lowest.