Asked by marta kebede on Apr 30, 2024
Verified
To whom does an accountant have potential liability?
A) To his client only.
B) To an intended third party beneficiary.
C) To a foreseen user of the accountant's work.
D) An accountant may be liable to all of these.
Potential Liability
Potential liability refers to the possibility that a person or entity may be held legally responsible for actions or consequences in the future.
Third Party
An entity or individual not directly involved in a legal contract or agreement, but that may be affected by it or participate in certain transactions.
Accountant's Work
Professional activities undertaken by an accountant, including auditing, financial reporting, and tax planning.
- Learn the ethical and legal obligations of accountants towards their clients, intended third-party beneficiaries, and foreseen users of their work.
Verified Answer
Learning Objectives
- Learn the ethical and legal obligations of accountants towards their clients, intended third-party beneficiaries, and foreseen users of their work.
Related questions
Accountants Must Abide by a Strict Code of Ethics That ...
If No, or Insubstantial, Accounting Procedures Were Used in the ...
Many Accountants and Other Professionals Store Confidential Information on Servers ...
Astrid Works for a Travel Agency ...
Professionals Who Are Responsible for Gathering,recording,reporting,and Interpreting the Financial Information ...