Under Which of the Following Tests Is an Accountant Held

question 64

Multiple Choice

Under which of the following tests is an accountant held liable to any third party that was or should have been foreseen as a possible user of the accountant's work product and that, in fact, did use and rely upon that work product for a proper business purpose?

• A) The Reasonably Foreseeable Users Test
• B) The Restatement Test
• C) The Privity Test
• D) The Near Privity Test
• E) The Ultramares Rule

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Definitions:

Assignment

The transfer of a debtor’s property to an Official Receiver under a voluntary assignment in bankruptcy.

Amount Owing

The total sum of money that is due or payable to another party.

Not to Commit Waste

A principle obligating a party to avoid causing damage or destruction to property.

Quiet Possession

The right of a tenant or property owner to use and enjoy their property without interference.