An Accountant's Liability to Third Persons for Negligence Is Generally

question 6

True/False

An accountant's liability to third persons for negligence is generally barred by the privity doctrine unless the accountant should have foreseen that the third party would rely on the audit.

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Definitions:

Comparative Advantage

The ability of a party to produce a particular good or service at a lower opportunity cost than another.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improving human life.

Automobiles

Motor vehicles with four wheels designed to transport people on roads; their availability, culture, and economics significantly impact society.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade and production.