The Foreseen Third-Party Rule States

question 12

Multiple Choice

The foreseen third-party rule states:

• A) Auditors can be held liable for damages to plaintiffs even if they are not known to the auditor.
• B) The auditor is liable to third parties not normally having privity.
• C) The plaintiff does not have to show standing.
• D) Both a and b.

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Definitions:

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues.

Market

A place or arrangement where buyers and sellers interact to trade goods, services, or financial instruments.

Sellers

Individuals or entities that offer goods or services for sale in the marketplace.

Buyers

Individuals or entities that acquire goods or services in exchange for money.