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L22 Notes_Part_7 - Fraud If an auditor has acted with...

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Common Law Third Parties Near Privity 3 rd parties whose relationship with the CPA approaches privity. Foreseen 3 rd Parties 3 rd parties whose reliance should be foreseen, even if the specific person is unknown to the auditor. Reasonably Foreseeable 3 rd Parties 3 rd parties whose reliance should be reasonably foreseeable, even if the specific person is unknown to the auditor. Ultramares (1931) Credit Alliance (1985) Security Pacific Business Credit, Inc. (1992) Rusch Factors, Inc. (1968) H. Rosenblum, Inc. (1983) Privity Yes Yes Yes Yes Near Privity No Yes Yes Yes Foreseen Third Parties (Restatement Standard) No No Yes Yes Reasonably Foreseeable Third Parties No No No Yes Auditor's Liability to 3rd Parties for Negligence
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