Under the Balancing Approach,the Third Party

question 12

Multiple Choice

Under the Balancing Approach,the third party:

• A)cannot recover unless in privity.
• B)cannot recover unless the accountant knew the purpose of reports and the identity of user.
• C)may recover when the accountant knew audited material would be used.
• D)may recover if determinative factors make liability desirable.

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Definitions:

Club Fungi

Fungi belonging to the division Basidiomycota, characterized by their reproductive structure shaped like a club.

Mushrooms

Fungi producing spore-bearing fruiting bodies that are often eaten as food.

Sac Fungi

Fungi that form spores in a sac-shaped structure during sexual reproduction. Most diverse fungal group.

Fungal Reproduction

The process by which fungi produce offspring, either sexually or asexually, involving spores.