The Privity Rule Permits the Filing of an Accounting Malpractice

question 36

True/False

The privity rule permits the filing of an accounting malpractice lawsuit by a third party against an accountant.

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Definitions:

Violation

An act of breaking or failing to comply with a set of rules or laws.

Profit Maximization

The process or strategy aimed at increasing a business's net profits to the highest possible level, often by increasing revenue, reducing costs, or both.

Corporate Veil

The legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from personal liability for the corporation's debts and obligations.

Corporate Debts

Financial obligations or loans undertaken by corporations, which can include bonds, loans, and other forms of financial liabilities owed to creditors.