Explain Section 552 of the Restatement (Second) of Torts.
What will be an ideal response?
Section 552 of the Restatement (Second) of Torts provides a broader standard for holding accountants liable to third parties for negligence than the Ultramares doctrine. Under this standard, an accountant is liable for his or her negligence to any member of a limited class of intended users for whose benefit the accountant has been employed to prepare the client's financial statements or to whom the accountant knows the client will supply copies of the financial statements. In other words, the accountant does not have to know the specific name of the third party. Many states have adopted this standard.
You might also like to view...
Fence Patrol has developed an entirely new mounting system for chain link fences. Although it is a local company, through the acquisition of a distributor Fence Patrol now has the ability to market its products nationwide
Which of the following is a promotion question that managers at Fence Patrol should address as they create a marketing mix for new international markets? A) What is the average local price for chain link fences? B) How does the target audience feel about the quality of chain link fences currently on the market? C) What message about Fence Patrol's chain link fences is most likely to connect with the target? D) Will wholesalers or retailers be the primary sources for Fence Patrol products in new markets? E) What will the target in each country be willing to pay for Fence Patrol products?
U.S. GAAP and IFRS require firms to account for debt securities designated as held to maturity at _____ except that they are also subject to _____. That is, firms do not recognize increases in fair value (unrealized gains) but might recognize decreases in fair value(unrealized losses)
a. amortized cost; impairment b. present value; depreciation c. net realizable value; impairment d. amortized cost; destruction e. net realizable value; depreciation
It is not necessary to post the closing entries to the general ledger
Indicate whether the statement is true or false
Any age below the statutory age of majority is called the period of minority
Indicate whether the statement is true or false