1. The liability of professionals is based on solely on statutory law
2. With respect to negligence, an accountant is subject to no greater standard of care than the average
3. An accountant’s violation of GAAP and GAAS is prima facie evidence of negligence
4. Compliance with GAAP and GAAS relieves an accountant of liability for negligence.
5. If an accountant is hired to prepare an unaudited financial statement, he or she may be liable for failing
to delineate the statements as “unaudited”.
6. A professional’s failure to perform a duty, with reckless disregard of the consequences, constitutes
7. A professional who intentionally misstates a material fact to mislead a client may be liable for actual
8. A professional whose client justifiably relies on the professional’s misstatement may be liable for
9. An accountant who prepares a financial statement for a client, knowing that the client will use the
statement to obtain a loan, can be liable to the lender
10. Some jurisdictions hold accountants liable to users whose reliance on the accountant’s statement was
11. An accountant’s liability under the Securities Act of 1933 does not require privity of contract with the