Delaney Is an Accountant Charged with Negligence by Estimation

question 50

Multiple Choice

Delaney is an accountant charged with negligence by Estimation & Valuation Services Inc., a client. Delaney may successfully defend against the claim if he can show that​

• A) ​scienter was lacking.
• B) ​he complied with all International Financial Reporting Standards.
• C) ​the negligence was not the proximate cause of the client's losses.
• D) ​the negligence was only contributory.

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Definitions:

Superseding Event

An unforeseeable event that interrupts the chain of causation and relieves all parties of liability.

Assumption of Risk

A legal doctrine under which an individual knowingly and willingly takes on the risks associated with an activity, potentially limiting liability for harm that occurs as a result.

Res Ipsa Loquitur

A legal doctrine that infers negligence from the very nature of an accident or injury, in the absence of direct evidence on how any defendant behaved.

Rebuttable Presumption

is a presumption in law that one can challenge and overturn with evidence to the contrary.