Brown v. the Board of Education

Many lawsuits against accountants involve liability of accountants to Third Parties. The plaintiffs are Third Parties (e.g., shareholders, bondholders, trade creditors, and banks) who relied on information supplied by the auditor. There are three (3) major rules of liability that a state can adopt in determining whether an accountant is liable in negligence to third parties.

1. The Ultramares doctrine.
2. Section 552 of The Restatement (Second) of Torts.
3. The foreseeability standard.

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