In a common law action against auditors,lack of privity is a viable defense if the plaintiff
A) Is the client's creditor who sues auditors for ordinary negligence.
B) Can prove auditors' gross negligence that amounts to a reckless disregard for the truth.
C) Is the auditors' client.
D) Bases the action upon fraud.

Question

Quizplus · Accepted Answer

Lack of privity is a viable defense when the plaintiff is a third party, such as a creditor, who does not have a direct contractual relationship with the auditors.

In a Common Law Action Against Auditors,lack of Privity Is