Question

35

Third Party Llability Approaches Read the overview below and complete the activities that follow. Common law cases are decided often by reference to established precedents or past decisions. The three main precedents regulating auditors' liability are: Ultramares (known user). Restatement (foreseen user), and Rosenblum (foreseeable user). CONCEPT REVIEW: The three approaches that regulate auditor responsiblity create conflicting precedents relative to auditor liability for negligence. Variants of each approach exist in every state. art 2 - Concept Check The approach requires auditors to be responsible to known financial statement users The Restatement approach requires responsibety towards users of the financial statements The approach assigns responsibility by the auditor to the narrowest category of financial statement users The approach includes responsibility toward any foreseeable users of the financial statements The third party ser approach revolves around auditor fraud Restatement Rosenblum Ultramares

Answer 1

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