Under the common law, which of the following statements is generally true regarding the liability of a CPA who negligently prepares a client's tax return?
A. The CPA is liable only to those third parties who are in privity of contract with the CPA.
B. The CPA is liable only to the client.
C. The CPA is liable to anyone in a class of third parties who the CPA knows will rely on the opinion.
D. The CPA is liable to all possible foreseeable users of the CPA's opinion.
Answer: C. The CPA is liable to anyone in a class of third parties who the CPA knows will rely on the opinion.
Business
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