Question

What is the best way for a plaintiff to establish legal liability for a CPA: Question 47 options: Prove the CPA made an untrue statement Demonstrate shortcomings in the CPA's engagement planning Show that the CPA's fees were higher than typical fees paid in the CPA's geographical area Prove causation (i.e. proximate cause)

Answer 1

Answer:

If a CPA does an audit irresponsibly, the CPA will be held liable to third parties who were recognized and not foreseeable to the CPA for gross negligence.

It needs to be specified if the third party had been “anticipatable,” liability; it may be recognized for ordinary negligence within a Rosenblum v. Adler decision.

Explanation: