Asked by Sameeha Riptee on Jun 28, 2024
Verified
Which of the following is correct with regard to an accountant's contractual liability?
A) An accountant is bound to perform all the duties she explicitly agrees to perform.
B) An accountant implicitly agrees to perform a contract in a competent and professional manner.
C) An accountant who breaches his contract with a client may also be liable to a third party intended beneficiary.
D) All of these are correct.
Contractual Liability
The legal obligation arising from a contract that requires a party to compensate for any losses or damages incurred.
Competent and Professional
Refers to possessing the required skills, knowledge, and ethical standards expected in a professional setting.
Third Party Intended Beneficiary
A person or entity that, while not a party to a contract, is intended by the contracting parties to benefit from its performance.
- Comprehend the duties and possible violations in the agreements between accountants and their clients.
- Understand the guidelines and responsibilities linked to negligence and ethical behavior in the field of accounting.
- Differentiate between tangible and intangible contract violations and their respective outcomes.
Verified Answer
Learning Objectives
- Comprehend the duties and possible violations in the agreements between accountants and their clients.
- Understand the guidelines and responsibilities linked to negligence and ethical behavior in the field of accounting.
- Differentiate between tangible and intangible contract violations and their respective outcomes.
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