In a State That Has Adopted the Ultramares Rule and Uses

question 46

Multiple Choice

In a state that has adopted the Ultramares rule and uses the primary benefit test,who amongst the following may hold an accountant liable for common law negligence?

• A) Only the client.
• B) Only the client and a third party that the accountant knew would rely on the accountant's work for a particular purpose.
• C) Only the client.A third party that the accountant knew would rely on the accountant's work for a particular purpose,and others who are in the same limited class as that third party.
• D) Any third party that is a foreseeable user of the accountant's work may hold him/her liable if that third party suffers a loss as a direct result of the accountant's negligence.

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Definitions:

Independence

The state of being self-reliant and free from outside control, enabling the individual to make their own decisions and actions.

Gender Equity

The fair treatment and equal opportunities for all genders, aiming to address and rectify inequalities.

Gender Stereotypes

Preconceived and oversimplified beliefs about the characteristics, attributes, and roles deemed appropriate for males and females in a society.

Power Relations

Power relations concern the dynamics of control, influence, and authority between individuals or groups within a particular context or society.