Exam1 - Accountability 8-10 question Contract liability &...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Accountability 8-10 question [Tort liability – Negligence or Fraud] * Fraud 1. Misrepresentation of ‘material’ fact 2. Justifiable reliance – something injury If you don’t have fraud, you can have constructive fraud = “reckless disregard consequences” You don’t have intent to deceive, but information gives you reckless disregard of the consequences. Courts falls that constructive fraud. “reckless disregard consequences” is more than negligence -Fraud is intentional tort. -Negligence is not intentional tort. Negligence – GAAP or GAAS - Compliance with generally accepted accounting principles and generally accepted auditing standards relieves an accountant of liability for negligence (False) You may have higher level based on your relationship with your client. *Third liability – Ultimares Doctrine 1. Privity Rule a. You would not liable of the third party because of the Privity contract between you and accountant not third party – you have no privity contract b. Accountant has some contact with a third party, even though they never contract with Bank Near Privity rule : even though you don’t know the contract with bank, but bank called you to tell the information. 2. Restatement a. Restatement came along instead of basically you do have a liability, basically, foreseen users. Anyone you know that intent to give to you. Anyone foreseen you know. Any foreseen (forecasted) users. b. Reasonably foreseeable that opens to anybody: any body who legally foreseeable.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/23/2010 for the course BLW 474 taught by Professor Su during the Spring '10 term at University of Nevada, Las Vegas.

Page1 / 4

Exam1 - Accountability 8-10 question Contract liability &...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online