If an Accounting Firm Is Sued for Negligently Preparing a Faulty

Multiple Choice

If an accounting firm is sued for negligently preparing a faulty financial report for a company that caused significant losses by those who relied on the accounting, the accounting firm is likely to be:

A) not liable; there is no promise that results will be perfect
B) held subject to the standard of care imposed on professional parties
C) held subject to a special statutory standard of care
D) held to have violated the principles of strict liability
E) none of the other choices