Common Law Duties and Liabilities

Free CPA REG (Taxation & Regulation) lesson in Ethics, Professional Responsibilities and Federal Tax Procedures. 17 min read, ~2,501 words.

Three claim types: breach of contract (privity required), negligence (state-dependent privity), fraud / constructive fraud (no privity required). Negligence requires duty, breach, causation, and damages; GAAS / GAAP compliance is strong evidence of due care. Fraud requires scienter (knowledge or reckless disregard) plus reliance and damages. Three third-party rules: Ultramares...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• I.D1

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