The privity requirement has traditionally served as a bar for many investors who have relied to their detriment on negligently prepared financial statements. This restriction of an accountant's liability has recently been broadened by some courts, which allow specifically and even reasonably foreseeable users of financial statements to bring negligence actions against the accountant. This comment examines the role of the financial statement in modern investment practice, discusses the recent expansion of the test, and advocates the adoption of a reasonably foreseeable standard.
Frank, Brian Jeffrey
"Comments: Adjusting Accountants' Liability for Negligence: Recovery for Reasonably Foreseeable Users of Financial Statements,"
University of Baltimore Law Review: Vol. 13
, Article 5.
Available at: https://scholarworks.law.ubalt.edu/ublr/vol13/iss2/5