Which Statement Accurately Describes the Liability of Accountants Under the Law

Multiple Choice

Which statement accurately describes the liability of accountants under the law of Canada?

A) Canadian law is well settled in relation to an accountant's liability to nonclients.
B) Canadian law does not recognize liability of an auditor in relation to a prospectus distributed with the auditor's filed consent by an issuer of securities containing misrepresentations.
C) Canadian law does not recognize liability on the part of an auditor for misrepresentations made in secondary-market disclosures made with the auditors' written consent.
D) As in the U.S., in Canada the common law holds accountants liable for negligence to clients.
E) In Quebec alone, accountants may not be held liable even if a causal link between fault and damage is established.