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The basic legal concept which was affirmed in the 1986 New York case,Credit Alliance, was that

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The basic legal concept which was affirmed in the 1986 New York case,Credit Alliance, was that

The basic legal concept which was affirmed in the 1986 New York case, Credit Alliance, was that

▸ the auditor's defense of privity of contract is still valid.

▸ the auditor is liable for ordinary negligence to specifically foreseen third parties.

▸ the auditor is liable for ordinary negligence to reasonably foreseeable third parties.

▸ the auditor's defense of contributory negligence is no longer valid.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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