4) Explain if, and why an accountant will be held liable to:its client, to 3rd party intended users of the financial statements and audits it prepares for its client, and to reasonably foreseeable users of the work, it prepared for its client. ∙ Be sure to identify who reasonably foreseeable users would be and why the accountant is responsible to them in the absence of privity.

An accountant owes it to their clients to use sound professional judgement. According to the Revised…

Answered: 4) Explain if, and why an accountant…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Explain if, and why an accountant will be held liable to:

its client,
to 3rd party intended users of the financial statements and audits it prepares for its client, and
to reasonably foreseeable users of the work, it prepared for its client.

∙ Be sure to identify who reasonably foreseeable users would be and why the accountant is responsible to them in the absence of privity.

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