Common Law Duties and Liabilities

Free CPA REG (Taxation & Regulation) lesson in Ethics, Professional Responsibilities and Federal Tax Procedures. 16 min read, ~2,364 words.

Three claim types: breach of contract (privity required), negligence (state-dependent privity), fraud / constructive fraud (no privity required). Negligence requires duty (GAAS / GAAP standards), breach, causation, and damages. Fraud requires scienter, knowledge or reckless disregard, plus reliance and damages. Three third-party rules: Ultramares (privity only), Restatement Second (foreseen users...

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