The Reasonably Foreseeable Users Test Holds an Accountant Liable to Any

question 44

True/False

The reasonably foreseeable users test holds an accountant liable to any third-party who was or should have been foreseen as a possible user of the accountant's work product and did, in fact, use and rely upon that work product for a proper business purpose.

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Definitions:

Articles of Partnership

A document that outlines the terms and conditions of a partnership, including the rights, responsibilities, and shares of profit among the partners.

Property Rights

Legal rights to use, control, and dispose of land and property.

Legal Entity

An organization or structure that has legal rights and obligations, such as a corporation, partnership, or trust.

Doctrine of Marshaling Assets

A principle in equity that gives a junior creditor the right to request that senior creditors satisfy their claims from assets not pledged by the junior creditor, when possible.