Final - Ch .20

Question 1

A tort is a breach of contract for which civil action may be taken (T/F)

Answer 1

False

Question 2

An auditor can be sued by a client for negligence under common law (T/F)

Answer 2

True

Question 3

General standard of performance owed by an accountant in his or her professional work is to…

Answer 3

Exercise the skill and care of a the ordinarily prudent accountant in the same circumstances

Question 4

Under the “Ultramares” doctrine, to what parties will an accountant be liable for negligence?

Answer 4

Privity but not foreseen parties