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2: Potential Liability to Third Parties & The Sarbanes-Oxley Act 5. Under the Restatement (Third) of Torts, an accountant's liability would extend to third parties if the accountant may o supply the information to the third party, if the accountant knows that the client intends to supply the information to the third party, or if the accountant intends or knows that the client intends to Influence the third party by using the information 6. A small minority of courts use the reasonably foreseeable user" test, but most do not because: O a. this test extends liability too far and exposes accountants to too much liability O b the United States Supreme Court has indicated disfavor for the test O ct requires the court to do too many calculations of potential ability O d most state legislatures have outlawed the test 7. Under what circumstances can an attorney be held liable to a nonclient? a. never b. When the attomey is determined to be negent by a court When the attomey has committed fraud or malicious conduct 8. The Sarbanes-Oxley Act only applies to domestic public accounting firms. 2. True b. False 9. The Public Company Accounting Oversight Board was created by the Sarbanes- Oy Act of 2000 10. Working papers usually do not include: MacBook Air

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