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What role does such knowledge play in enabling

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1. The auditors (P&T) claimed to have no duty to Anjoorian as a shareholder of FCC. The Rhode Island Supreme Court acknowledged that the duty of accounting professionals to third parties is an open question in the state, but it did identify at least three competing views: the foresee ability test, the near-privities test, and the Restatement test. Briefly describe the legal reasoning with respect to each of the three liability standards and how they pertain to the facts of the case.

2. The court decision refers to the importance of the auditors knowing about third-party usage of the audited financial statements. What role does such knowledge play in enabling auditors to meet their professional and ethical responsibilities?

Reference no: EM13866350

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