The Known User Rule Imposes Liability on the Accountant for Malpractice

question 51

True/False

The known user rule imposes liability on the accountant for malpractice when he can foresee the parties who will rely on his work in the financial statements.

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Definitions:

Injunctive

Pertaining to an order or directive issued by an authority, often legal in nature, requiring specific actions to be taken or avoided.

Adjunctive

Supplementary or additional to something rather than being an essential part; often used in the context of treatments or activities that support a primary objective.

Conjunctive

Serving to connect or combine items logically, typically used in reference to words or phrases.

Paralinguistics

involves the non-verbal elements of communication such as tone of voice, loudness, and pitch, which contribute to the conveyance of meaning and emotion.