Question

The Restatement (Second) of Torts Approach

a. Limits an accountant's legal liability to only those parties with which it has a privity relationship
b. Limits an accountant's legal liability to only those parties that have been named by the client
c. Expands an accountant's legal liability to all possible users of the audited financial statements
d. Expands an accountant's legal liability to third parties identified by the client as intended recipients of work

Answer 1

d. Expands an accountant's legal liability to third parties identified by the client as intended recipients of work.

Step-by-step explanation:

The Restatement of Torts Approach is basically an amendment in American Law. It expands the scope of accounting to be more true and fair in representing the results.

Further it expands the liability of an accountant in the company towards the third party to assure the remaining balance to be paid in proper manner.

This is to confirm the proper outstanding amounts as the company aims, to match the balance with that in the books of third party.

Thus, correct statement is D.