Asked by Jordyn Orrison on May 01, 2024
Verified
About half of the states have adopted the ________ of accountant liability for negligence to third-parties.
A) Restatement test
B) negligent accountant test
C) defrauder test
D) liability standards test
E) states liability test
Restatement Test
A legal principle used to clarify the law by restating existing statutes or case law in a simplified manner.
Liability for Negligence
The legal responsibility that arises when someone fails to exercise a reasonable standard of care, resulting in harm or damage.
- Determine the range of evaluations and norms for assessing the obligations of accountants to third parties.
Verified Answer
NS
nadiya sundraniMay 07, 2024
Final Answer :
A
Explanation :
The Restatement test is the correct answer because it refers to a set of principles for determining an accountant's liability for negligence to third parties, which has been adopted by about half of the states. This test is derived from the Restatements of the Law, a series of treatises on legal subjects that aim to distill the common law into a coherent set of principles.
Learning Objectives
- Determine the range of evaluations and norms for assessing the obligations of accountants to third parties.
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