Under the near Privity Approach, an Accountant May Be Liable

question 18

Multiple Choice

Under the near privity approach, an accountant may be liable in negligence to third parties when the:

• A) accountant is unaware that the financial reports were to be used for a particular purpose.
• B) identity of the third parties is unknown to the accountant but the accountant knows that these third parties would rely on the reports.
• C) accountant is not aware of the fact that the third party would rely on the reports.
• D) conduct of the accountant links him or her to the third party that evidences the accountant's understanding of the third party's reliance.

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