Question

what is the Ultramares doctrine? (discuss and elaborate) and provide three reasons, why you agree or disagree with the doctrine

Answer 1

ANSWER:-

Ultramares Doctrine holds that ordinary negligence is insufficient for liability to third parties because of lack of privity of contract between the third party and the auditor, unless the third party is a primary beneficiary.

I agree with the Ultramares doctrine because I assume that the accountants are honest and upright. Under the Ultramares doctrine, the accountant is liable only for negligence to third parties who are in privity of contract or privity like relationship with accountant.

Accounting is one of the professions that require outmost care. In many cases, accountants ensure that they execute their duties, as the work requires. Despite this, there are cases when accountant conduct themselves in ways that do not conform to their ethnic requirements. In a case, the Ultramares doctrine is used assess the liability of accountants. Based on this doctrine, accountants are liable to third parties when they do not exercise due care, and when they are aware that third parties will see their work or use them for other purpose.Ultramares doctrine will make accountants practice care when need be and not as a duty.